|8:24 PM EST||
Stephen F. Lynch, D-MA 8th
Mr. LYNCH. Mr. Speaker, I want to thank the gentlewoman for yielding and for her great work on this issue.
Mr. Speaker, I rise in strong opposition to H.R. 37, the so-called Promoting Job Creation and Reducing Small Business Burdens Act.
I served on the Financial Services Committee during the 2008 financial crisis, and I had an opportunity to witness the harmful impact that lack of regulation had on hardworking families around our Nation at a total cost of more than $22 trillion, according to the Government Accountability Office. My constituents--and many of yours--lost their homes, their jobs, and their retirement savings during that period. Many pension funds today continue to suffer and are on the brink of collapse because
of the reckless policies that were observed during that time by many of our major banks.
While I voted against the bailout of the Wall Street banks who were rewarded with bonuses as a result of the bailout, I did have the honor of helping to assist in reforming our financial system through the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act. I regret the bill under consideration today rolls back many of those reforms that my colleagues and I fought so hard to adopt.
I would note that after being defeated last week under a suspension process that offered no opportunity for amendments, this bill now has inexplicably been brought to the House floor under a closed rule that again does not include any of the 14 amendments that were filed with the Rules Committee. At a minimum, a bill that does so much harm to our financial system necessitates the normal committee process and additional time for debate.
H.R. 37 contains 11 separate bills, a few of them which I support, others I strongly oppose. Portions of H.R. 37 have entirely new provisions that the members of the committee and of this Congress have not had the opportunity to thoroughly analyze.
By the way, if you desire a good review of this legislation, in this past Sunday's New York Times there is an article written by Gretchen Morgenson that I think is extremely well-written and goes into great detail beyond the time that I am allocated here tonight.
Title II of this bill would allow banks with commercial business to trade derivatives privately rather than on clearinghouses. This would increase risk and reduce transparency for these transactions. My amendment, which was not accepted, would have improved the provisions by prohibiting systematically important financial institutions, whose collapse would pose a serious risk to our financial system, from claiming the exemption under this title.
Title VIII of this bill includes new language that has not been considered by the Financial Services Committee under regular order. If passed, title VIII would give banks an additional 2 years to comply with the provisions of the Volcker rule that mandates that banks divest collateralized loan obligations--packages of risky debt.