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McHenry: Democrats are Holding this Hearing in Search of a Headline


McHenry: Democrats are Holding this Hearing in Search of a Headline


Republicans instead question bank CEOs on systemic risk, issues facing U.S. financial system


Washington,
April 10, 2019 

WASHINGTON – Today, the House Financial Services Committee received testimony from seven Global Significantly Important Bank (GSIB) CEOs, including: Citigroup, JP Morgan Chase & Co., Morgan Stanley, Bank of America, State Street Corporation, Bank of New York Mellon, and Goldman Sachs.

Republican leader of the Committee, Patrick McHenry (NC-10), delivered opening remarks stating his concern that Democrats may be “here to attack our economic system, attack the nature of our market” and are simply holding this “hearing for a headline.” In contrast, Ranking Member McHenry stated Republican’s focus would be on examining systemic risk. He referenced his letter to Chairwoman Maxine Waters (CA-43) earlier this year urging the Committee to hold hearings on “critical issues that pose systemic risk to our economy and the health of our financial markets,” like Brexit, cybersecurity risks, and a slowing global economy, among others. Unfortunately, hearings on these topics have yet to be scheduled.

Watch Ranking Member McHenry’s opening remarks here or by clicking on the image below.

Congressman Frank Lucas (OK-03), highlighted the importance of cybersecurity, an issue raised by Republican leaders of the Committee as a systemic risk to the financial system, but pointed to the complexity and cost of complying with the current regulatory structure. Across the board, CEOs of the GSIBs agreed that cybersecurity attacks pose one of the greatest threats to our financial system today and detailed their efforts to combat this danger.

Watch Congressman Lucas’ line of questioning here or by clicking on the image below.

Congressman Steve Stivers (OH-15), Ranking Member of the Subcommittee on National Security, International Development, and Monetary Policy, went on to state that instead of relitigating the Dodd-Frank Act, he would “like to talk about pressing financial issues and financial challenges of today,” and asked the CEOs to share what they thought posed the greatest risk to our financial system currently. Overwhelmingly, the CEOs agreed that cyber threats and slowing global economic growth were their greatest concerns. Additionally, the CEOs unanimously agreed that “having large financial institutions is good for America’s national security.”

Watch Congressman Stivers’ line of questioning here or by clicking on the image below.

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