Cantor Backs Financial Regulatory Reform Plan
Republican Whip Eric Cantor (R-VA) today issued the following statement supporting the introduction of a comprehensive House Republican regulatory reform plan introduced by Financial Services Ranking Member, Rep. Spencer Bachus:
"We need smart regulation, not necessarily more regulation. The Administration has placed too much emphasis on government and too little on people. Providing even more power to the same regulators who presided over the market breakdown is not intelligent. The culture of bailouts must stop, and instead of adding yet another layer to the current patchwork regulatory system, we need to bring stability and security back to the market so credit starts flowing and jobs are created.
"Today, thanks to the leadership of Ranking Member Bachus and Republicans on the Financial Services Committee, Republicans are united to reduce uncertainty and to stop the government from picking winners and losers in the marketplace. We want to see market forces return under a set of smart, focused rules to restore financial security for families across this country. We stand ready and willing to work together so that our capital markets can return to prominence, small businesses can access credit, and America starts creating jobs again."
The Consumer Protection and Regulatory Enhancement Act will:
Provide for the resolution of insolvent non-bank financial institutions no matter how large or systemically important through the bankruptcy system.
Create a Market Stability and Capital Adequacy Board that is charged with monitoring the interactions of various sectors of the financial system, and identifying risks that could endanger the stability and soundness of the system.
Establish an Office of Consumer Protection, with enhanced authority, within a consolidated regulatory agency to streamline in one place responsibility for rulemaking and enforcement of Federal consumer protection laws.
Restore the Federal Reserve's monetary policy mandate by relieving it of current regulatory and supervisory responsibilities.
End taxpayer subsidies of Fannie Mae and Freddie Mac
End Federal regulators' reliance on use of credit rating agencies.