Systemic Risk Designation Improvement Act of 2016

Floor Speech

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Madam Speaker, I yield myself 2\½\ minutes. Today's bill spells out the criteria the Financial Stability Oversight Council, FSOC, must use in determining institutions of systemic risk.

My amendment will prevent the Federal Reserve and the Treasury from blindly implementing new regulations proposed by an international entity, whether coming from the Basel Commission or from the unelected bureaucrats on the Financial Stability Board. When Congress begins to apply international standards, we need to make certain that executive agencies don't overreach by simply ratifying every decision that is made internationally.

Recently, the Treasury and the Fed have been found to have made determinations that mirror the standards issued by the Financial Stability Board but without sufficient review--simply rubberstamping them. They have gone along with the decisions that have been made by international unelected bureaucrats and, in the process, have harmed our regional and community banks and Americans' access to credit.

Similar concerns have been raised by U.S. insurance companies. That is why Mr. Luetkemeyer is also sponsoring legislation to make sure that these one-size-fits-all regulations are not used to supersede our State-based insurance regulations here in the United States.

H.R. 6392 will provide the necessary relief and transparency that is needed in these systemic risk designations. I am proud to offer this amendment to clarify that our Federal agencies cannot use the loophole of international recommendations to expand their powers and subject our community and local banks to even more burdensome regulations.

Madam Speaker, I reserve the balance of my time.

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