Senate Banking Committee examines how to foster economic growth

March 28, 2017

On Tuesday, March 28, 2017, the Senate Banking Committee held a hearing titled “Fostering Economic Growth: The Role of Financial Companies.”  In his opening statement, Chairman Mike Crapo (R-ID) called for studying the current state of the economy. Ranking Member Sherrod Brown (D-OH) used his opening remarks to defend against efforts to reform the Dodd-Frank Act.

The hearing featured testimony from Former Federal Reserve Governor Robert Heller, former FDIC Chairman Donald Powell, Howard University Professor and Chief Economist of the AFL-CIO William Spriggs, Co-Director of the New Economy Project Deyanira Del Rio, and National Association of Corporate Treasurers Chairman Thomas Deas, Jr.  Several of the witnesses addressed the need to streamline the financial regulatory system to prevent overregulation.

During the Q&A period, there was discussion of increasing capital requirements rather than increasing regulations.  Additionally, community bank regulatory relief received support from both the witnesses and members of the committee. Further, Democratic Senators raised concern about proposed cuts to the Department of Housing and Urban Affairs and Community Development Financial Institutions in President Trump’s “skinny” budget for Fiscal Year 2018.