Rep. Hensarling urges Congress to pass flood insurance bill

Rep. Jeb Hensarling (R-TX) recently urged Congress to pass a bill that would extend the National Flood Insurance Program (NFIP) through Nov. 30, 2018.© Shutterstock While the House advanced the bipartisan legislation more than eight months ago, the NFIP is set to expire at the end of July without Congressional action. The NFIP Extension and […]

The post Rep. Hensarling urges Congress to pass flood insurance bill appeared first on Financial Regulation News.

Rep. Jeb Hensarling (R-TX) recently urged Congress to pass a bill that would extend the National Flood Insurance Program (NFIP) through Nov. 30, 2018.

© Shutterstock

While the House advanced the bipartisan legislation more than eight months ago, the NFIP is set to expire at the end of July without Congressional action.

The NFIP Extension and Enhanced Consumer and Community Protections Act of 2018 (H.R. 6402), sponsored by Reps. Ed Royce (R-CA) and Earl Blumenauer (D-OR), also includes eight reforms that have all been passed by the House. The reforms include having at-risk communities develop and implement a local plan to reduce their flood risk. It would also make available an additional $60,000 in insurance coverage to help homeowners cover the cost of new mitigation measures. Further, it would allow policyholders to pay their bills in monthly installments.

“Flooding in the United States killed over 115 people last year, and more than 550 since the last time Congress enacted a long-term NFIP reform bill. Yet 38 of the last 41 short-term extensions of the NFIP have contained zero reforms whatsoever — something which has to change if we want to help keep people safe,” Hensarling, chairman of the Financial Services Committee, said regarding the reauthorization of NFIP.

Hensarling said that he believes the Royce-Blumenauer bill is the best option right now even though a long-term solution is still needed.

“The right thing to do here would have been for Congress to enact a long-term reauthorization bill with reforms before this deadline,” Hensarling said. “However, given where we are, I think that the [NFIP Extension and Enhanced Consumer and Community Protections Act] represents the best option right now to keep the NFIP open and adopt some commonsense reforms to help policyholders and at-risk communities while we continue to work on a long-term solution.”

The post Rep. Hensarling urges Congress to pass flood insurance bill appeared first on Financial Regulation News.

Read more / Original news source: https://financialregnews.com/rep-hensarling-urges-congress-pass-flood-insurance-bill/

House subcommittee examines digital currencies

The House Monetary Policy and Trade Subcommittee recently studied the extent to which the government should consider cryptocurrencies as money and its impact on domestic and foreign economies. © Shutterstock “The subcommittee examined the potential impact of digital currency on the future of our financial system,” Subcommittee Chairman Andy Barr (R-KY) said. “From its viability […]

The post House subcommittee examines digital currencies appeared first on Financial Regulation News.

The House Monetary Policy and Trade Subcommittee recently studied the extent to which the government should consider cryptocurrencies as money and its impact on domestic and foreign economies.

© Shutterstock

“The subcommittee examined the potential impact of digital currency on the future of our financial system,” Subcommittee Chairman Andy Barr (R-KY) said. “From its viability as an alternative to traditional currencies, to its potential adoption by central banks, to its possible impact on monetary policy, it is important Congress carefully study every aspect of this new technology.”

Barr said the subcommittee also evaluated the merits of any uses by central banks of cryptocurrencies to better understand the future of both digital currencies and physical cash.

Officials said they must examine the extent to which digital currencies should be considered as money and the potential domestic and global uses for digital currency while noting many central banks around the world are considering instituting some form of digital currency.

“There is no doubt that the digitalization of financial transactions, records, access to information, and communication will continue to increase, and that the electronic networks underlying the activity continue to grow more intense and omnipresent,” Alex J. Pollock, R Street Institute distinguished senior fellow, said. “But the fundamental nature of money, it seems to me, will not change. “It is clear that having a flat currency is far too precious and profitable for governments for them ever to go back to a government currency backed and convertible into actual assets, whether gold coins or otherwise.”

The post House subcommittee examines digital currencies appeared first on Financial Regulation News.

Read more / Original news source: https://financialregnews.com/house-subcommittee-examines-digital-currencies/

Federal Reserve Board issues termination of enforcement actions with Community Banks of Georgia, Inc., and Grand Mountain Bancshares, Inc.

Federal Reserve Board issues termination of enforcement actions with Community Banks of Georgia, Inc., and Grand Mountain Bancshares, Inc.

Federal Reserve Board issues termination of enforcement actions with Community Banks of Georgia, Inc., and Grand Mountain Bancshares, Inc.

Read more / Original news source: https://www.federalreserve.gov/newsevents/pressreleases/enforcement20180719a.htm

Legislation seeks to reform capital markets, advances House

Lawmakers recently lauded the House advancement of the JOBS and Investor Confidence Act of 2018, stating that it is a step toward helping small businesses, entrepreneurs, and investors by reforming capital markets.© Shutterstock “The JOBS and Investor Confidence Act of 2018 will help sustain 3 percent economic growth and ensure we are able to compete […]

The post Legislation seeks to reform capital markets, advances House appeared first on Financial Regulation News.

Lawmakers recently lauded the House advancement of the JOBS and Investor Confidence Act of 2018, stating that it is a step toward helping small businesses, entrepreneurs, and investors by reforming capital markets.

© Shutterstock

“The JOBS and Investor Confidence Act of 2018 will help sustain 3 percent economic growth and ensure we are able to compete globally with countries like China,” Rep. Jeb Hensarling (R-TX), Financial Services Committee chairman, said. “By helping entrepreneurs access the capital they need to launch their companies and to go and stay public, this bill ensures America’s garages have fewer old cars and more new startups. The small businesses of today become the Amazon’s, Google’s and Microsoft’s of tomorrow. Thanks to the hard work of Members on both sides of the aisle, especially Ranking Member Maxine Waters, who worked so fervently on a cooperative basis, this bill will make a difference for economic growth for all Americans.”

Legislators said the bill includes provisions to ease regulations on angel investors and expands the definition of accredited investors to make it easier for startup companies and small businesses to attract investments needed to grow and create jobs. The legislation will also make it easier for companies to go public by extending on-ramp exemptions for emerging growth companies (EGCs), ease securities regulations on Initial Public Offerings (IPOs) to increase opportunities for everyday investors, and cut red tape on asset managers so that Main Street investors do not have to shoulder the costs of unnecessary regulations.

The post Legislation seeks to reform capital markets, advances House appeared first on Financial Regulation News.

Read more / Original news source: https://financialregnews.com/legislation-seeks-reform-capital-markets-advances-house/

House subcommittee examines ways to address regulatory challenges on banks

The House Subcommittee on Financial Institutions and Consumer Credit held a hearing this week to examine regulations for financial institutions and to explore ways to address regulatory challenges. © Shutterstock One of the key regulatory challenges is capital requirements. “While I believe in robust capital requirements, I don’t think capital should be required to the […]

The post House subcommittee examines ways to address regulatory challenges on banks appeared first on Financial Regulation News.

The House Subcommittee on Financial Institutions and Consumer Credit held a hearing this week to examine regulations for financial institutions and to explore ways to address regulatory challenges.

© Shutterstock

One of the key regulatory challenges is capital requirements.

“While I believe in robust capital requirements, I don’t think capital should be required to the point that it consolidates risk and eliminates choice in the marketplace for commercial and individual clients. The reality is that we still live in a world where the financial regulatory regime stifles growth and limits the availability of financial products,” Subcommittee Chairman Blaine Luetkemeyer (R-MO) said. “We need smarter, tailored regulatory regimes that promote not just transparency, but also effective consumer and systemic protections.”

Kevin Fromer, president and CEO of the Financial Services Forum, said it is time to conduct a review of the post-financial crisis framework.

“Integration of the stress testing and capital regimes to achieve a more simplified and harmonized capital framework is a laudable goal,” Fromer said. “The Federal Reserve should undertake a broader review of its capital and stress testing programs to ensure that boards of directors at financial institutions can clearly and appropriately make capital management decisions.”

Douglas Holtz-Eakin, president of the American Action Forum, said Dodd-Frank went too far. It imposed a series of capital regimes on large financial institutions that had nothing to do with the causes of the financial crisis. This, in turn, has hurt economic growth.

Dodd-Frank also hurt moderate-sized banks, Keith Noreika, a partner at Simpson Thacher & Bartlett, said.

“Moderately-sized regional banking organizations with traditional and straight-forward business models that provide communities with their traditional banking needs, such as getting loans and having a place to make deposits, have been generally subject to the same stress testing, risk management, capital, and liquidity requirements that are applied to firms that are materially larger and more complex,” Noreika said. “These requirements have adversely impacted the lending activities of regional and community banks, and have increased the price of, and reduced the access to, credit for families, small businesses, and other job creators in our economy.”

The post House subcommittee examines ways to address regulatory challenges on banks appeared first on Financial Regulation News.

Read more / Original news source: https://financialregnews.com/house-subcommittee-examines-ways-address-regulatory-challenges-banks/

Check your mailbox: Veterans with severe disabilities and student loans should keep an eye out for this

The Department of Education is sending letters to veterans with severe
disabilities notifying them that they may be eligible for a tax-free discharge
of their outstanding student loans. Here’s what to look for if you’re eligible.

The Department of Education is sending letters to veterans with severe disabilities notifying them that they may be eligible for a tax-free discharge of their outstanding student loans. Here’s what to look for if you’re eligible.

Read more / Original news source: https://www.consumerfinance.gov/about-us/blog/check-your-mailbox-veterans-severe-disabilities-and-student-loans-should-keep-eye-out/

Bureau of Consumer Financial Protection Settles with Triton Management Group

Triton Did Not Properly Disclose Terms and Conditions of Certain Loan Products, and Failed to Disclose Finance Charges in Advertisements 

Triton Did Not Properly Disclose Terms and Conditions of Certain Loan Products, and Failed to Disclose Finance Charges in Advertisements 

Read more / Original news source: https://www.consumerfinance.gov/about-us/newsroom/bureau-consumer-financial-protection-settles-triton-management-group/

House Financial Services Committee advances package of bills to help small businesses

House Financial Services Committee advanced Monday a legislative package designed to help small businesses and entrepreneurs.© Shutterstock The package, called the “JOBS and Investor Confidence Act of 2018,” includes 32 individual pieces of legislation that have either passed in the Financial Services Committee or the full House. “Over the last several months, our Committee has […]

The post House Financial Services Committee advances package of bills to help small businesses appeared first on Financial Regulation News.

House Financial Services Committee advanced Monday a legislative package designed to help small businesses and entrepreneurs.

© Shutterstock

The package, called the “JOBS and Investor Confidence Act of 2018,” includes 32 individual pieces of legislation that have either passed in the Financial Services Committee or the full House.

“Over the last several months, our Committee has been working hard to put forth a number of capital-formation bills that are designed to breathe new life into markets that are suffocating under aging regulations,” Committee Chairman Jeb Hensarling (R-TX) said. “Thanks to the efforts of the Ranking Member and Members of the Committee on both sides of the aisle, we have a strong bipartisan package that will play an important role in sustaining long-term economic growth and global competitiveness.”

The package has bipartisan support.

“A stronger economy, more jobs for America’s families, and strong investor protections are top priorities for Committee Democrats,” Committee Ranking Member Maxine Waters (D-CA) said. “I want to thank the Chairman and the staff of the Committee on both sides of the aisle for the work that they have been doing, working together to live up to what we always say—that we all support small businesses, their access to capital and protecting investors. This is true bipartisanship we are witnessing today.”

Included in the package of 32 bills is the Crowdfunding Amendments Act, sponsored by Waters and Rep. Patrick McHenry (R-NC), which allows crowdfunding investors to pool their money together into a fund advised by a registered investment advisor.

The package now moves to the full House floor for further consideration.

The post House Financial Services Committee advances package of bills to help small businesses appeared first on Financial Regulation News.

Read more / Original news source: https://financialregnews.com/house-financial-services-committee-advances-package-bills-help-small-businesses/