Directing Committees to Renew Regulations from Federal Agencies
Floor Speech
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Mrs. CAPITO. Thank you, Mr. Chairman, for yielding me the time. Thank you for your leadership on our committee as we work toward better solutions for a modernized financial regulatory structure.
Last year, the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law. Today we
are realizing the overarching effects such legislation will have on our economy, and this has only just begun. Onerous new regulations and the creation of an entirely new agency with vast influence over consumer choice will only impede our recovery. Instead of expanding the scope of government, we need efficient and effective regulatory oversight to support the private sector which will drive our economy's recovery.
I have deep concerns about what this new law will mean for employment, as do many of my constituents. Charles Maddy, who is the president of Summit Community Bank, testified before our committee. The bank is headquartered in my district, and he testified just this month about the effects of the new rules and regulations enacted under the Dodd-Frank financial reform legislation on small institutions. Even though small institutions are supposedly ``carved out'' of this law, Charlie expressed serious concerns about his institution's ability to compete in this new regulatory regime. Banks that didn't take excessive risks or use exotic financial products are going to see higher compliance costs, limited access to capital, and regulatory pressures on lending issues, all of which hurt our ability and his ability to serve the community.
While it is necessary to regulate those that acted irresponsibly, it is important that the regulations be targeted and effective, not broad and burdensome. At a time when we should be creating economic certainty in our markets, we are seeing the unintended consequences of this law. According to Mr. Maddy, ``New standards are being applied without banks having a clear understanding of where they are.'' This will only discourage investment and innovation and hinder job creation.
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