Treasury Secretary Mnuchin Testifies Before House Financial Services Committee, Provides Overview of Tailored Regulatory Approach
On July 27, the House Financial Services Committee held a hearing entitled “The Annual Testimony of the Secretary of the Treasury on the State of the International Financial System.” Committee Chairman Jeb Hensarling (R-Tx.) opened the full committee hearing asserting that “the unaccountable Washington bureaucracy must finally be held accountable, [and we] must address the regulatory cost of doing business in the U.S. under Dodd-Frank.” Rep. Hensarling commended President Trump’s Executive Order establishing the core principles for regulating the U.S. financial system and called it “vitally important to us all.”
Treasury Secretary Steven T. Mnuchin was the only witness at the June 27 hearing, offering testimony and answering questions concerning, among other things, (i) praise for the Committee’s passage of the Financial CHOICE act; (ii) tailoring capital requirements for small, mid-sized, and region banks; (iii) identifying a “single, lead regulator” to reduce regulatory overlap; (iv) remedying the Volcker Rule; (v) making the CFPB more accountable through statutory changes; (vi) reforming housing finance, noting that the current system, “in which the GSEs remain in perpetual Federal Housing Finance Agency conservatorship . . . is not sustainable and leaves taxpayers at risk”; and (vii) addressing tax reform.