Issue Position: Financial Reform

Issue Position

In response to the U.S. housing and financial downturns, Congress has considered reforms to reduce the likelihood of future failures.

To date, the House has approved H.R. 4173 and the Senate approved S. 3217.

I opposed these proposals and instead supported alternative legislation that would not pick market winners and losers, would not create a permanent government bailout environment, and would not allow the Federal Reserve to continue acting with unlimited and expanding authority.

I am a cosponsor of H.R. 3310, the "Consumer Protection and Regulatory Enhancement Act." This solution contains three core components:

Ending the Bailouts Once and For All

The federal government should not prop up failing institutions or pick winners and losers through bailouts using taxpayer funds. Instead, this legislation creates a new chapter of the bankruptcy code to provide an efficient and orderly manner for financial institutions to dissolve.

Transform Fannie Mae and Freddie Mac

The government must acknowledge the government's contributions to the housing slide and end taxpayer support of Fannie Mae and Freddie Mac. This bill would end federal subsidies to these organizations and transition them to become private firms that compete on a level playing field with other firms.

Reform the Federal Reserve

The Federal Reserve should undergo extensive audits. This bill would refocus the Fed on its core mission of conducting monetary policy by limiting its authority to respond to "unusual and exigent" circumstances.

Separate from this bill, I support H.R. 1207 and H.R. 2424 to audit the Federal Reserve.

Conference Committee

I was appointed to the Financial Reform Conference Committee to negotiate the differences between the House and Senate versions of the reform bills.

On June 16, 2010 I offered an ammendment to enhance transparency and reporting of the Securities and Exchange Commission (SEC). This amendment was defeated.

I also offered an amendment with Representative Ed Royce to offer greater whistleblower protections. This amendment was approved.

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