¶ Supporter of Deregulating Banks
Rep. Patrick McHenry has vowed to prioritize “‘vigorous oversight’” of financial regulators as House Financial Services Chair and has proudly claimed to fight “regulatory constraints” as a member of Congress. McHenry most notably worked for the “swift implementation” of Trump’s anti-consumer protection legislation, which was slammed as eroding post-financial crisis reforms enacted in the Dodd-Frank Act.
¶ McHenry Has Vowed To Prioritize “‘Vigorous Oversight” Of Financial Regulators As House Financial Services Chair After Boasting Of Fighting “Regulatory Constraints” As The Committee’s Ranking Member.
¶ McHenry’s Four Priorities He Would Pursue As Chairman Are “‘Vigorous Oversight’” Of Wall Street’s Main Financial Regulators, Increasing The Number Of Public Companies, Increasing Oversight Of Stablecoins, And Expanding The Deregulatory Gramm-Leach-Bliley Act.
McHenry Has Identified Four Priorities He Would Pursue As House Financial Services Chairman, The First Of Which Would Be “‘Vigorous Oversight’” Of “The Two Main Federal Agencies That Oversee Wall Street,” The Securities And Exchange Commission (SEC) And The Commodity Futures Trading Commission (CFTC). “McHenry said as Financial Services chairman he would have four priorities, some of which are sure to rankle Democrats. His first goal would be to provide ‘appropriate’ and ‘vigorous oversight’ of the Securities and Exchange Commission and Commodity Futures Trading Commission, the two main federal agencies that oversee Wall Street. Conservatives are eager to have SEC Chairman Gary Gensler in person to explain his proposals on ESG and private-fund advisers.” [Roll Call, 11/04/22]
McHenry’s Second Priority Would Be To “Propose Policies That Would Help Businesses Raise Money” And Address A “Long-Standing Republican Concern” That There Are Too Few Public Companies. “McHenry’s second priority would be to propose policies that would help businesses raise money. He has echoed both a long-standing Republican concern that the number of public companies is too low and said some federal securities laws disadvantage Black and Latino investors.” [Roll Call, 11/04/22]
McHenry’s Third Priority Is To “Increase Regulatory Oversight Of Stablecoins, Which Are Digital Tokens That Attempt To Tie Their Value To An External Reference Such As Gold Or The U.S. Dollar.” “McHenry’s third priority would be to increase regulatory oversight of stablecoins, which are digital tokens that attempt to tie their value to an external reference such as gold or the U.S. dollar.” [Roll Call, 11/04/22]
McHenry’s Fourth Priority Would Be To “Expand The Reach Of The Gramm-Leach-Bliley Act Of 1999,” Which Allowed The Combination Of Investment And Commercial Banks. “Finally, as chairman, McHenry would seek to expand the reach of the Gramm-Leach-Bliley Act of 1999, a federal law that allowed investment and commercial banks to combine, to add new personal data rules.” [Roll Call, 11/04/22]
¶ McHenry’s Political Campaign Claims That He Has Fought “Regulatory Constraints” While The House Financial Services Committee’s Ranking Member—Notably McHenry Received At Least $1.3 Million From Financial Industry Companies Between Jan. 2021 And Sept. 2022 Alone.
McHenry’s Campaign Website Claims That He Has Fought “Regulatory Constraints” While Ranking Member Of The House Financial Services Committee. “That is why Patrick has become a fighter for entrepreneurs and small business in Washington. As the Republican Leader of the House Financial Services Committee, he is a staunch advocate for innovative solutions that increase access to banking services and credit for American families and small businesses. He is fighting regulatory constraints that have killed competition, closed community banks, and hurt families in western North Carolina.” [McHenry for Congress, accessed 11/16/22]
$1.3 Million Of The $3.4 Million McHenry Raised From January 2021 Through September 2022 Came From “Commercial Banking, Investment Firms And Financial Technology Companies.” “The Financial Services Committee oversees commercial banking, investment firms and financial technology companies, and McHenry has raised millions from lobbying organizations that represent them. From January 2021 through this September, those three industries alone accounted for $1.3 million of the $3.4 million his campaign committee raised overall, according to OpenSecrets.org.” [Roll Call, 11/04/22]
¶ Rep. Patrick McHenry Was A Vocal Supporter Of The Economic Growth, Regulatory Relief, and Consumer Protection Act, Legislation Which Was Criticized For Weakening Post-Financial Crisis Dodd-Frank Reforms.
¶ McHenry Voted For And “Pushed For The Swift Implementation” Of S. 2155, The Economic Growth, Regulatory Relief, and Consumer Protection Act, A Bill To Weaken Dodd-Frank Financial Reforms “Designed To Tame Wall Street, Protect Consumers And Make Our Financial System Less Fragile."
S. 2155, The Economic Growth, Regulatory Relief, and Consumer Protection Act Is Prominently Featured On A House Financial Services Committee Page Outlining McHenry’s Work On “Regulatory Relief,” Noting McHenry “Pushed For The Swift Implementation” Of The Bill. “At a hearing on the proposed merger of BB&T and SunTrust Bank, Ranking Member McHenry remarks on the consequences of Dodd-Frank’s overly burdensome regulations. Dodd-Frank was sold as the answer to consumer protection and financial stability, but it’s resulted in increased costs for financial institutions, and more headaches and paperwork for Americans as they try to open a bank account, get a mortgage, or save for retirement. Last year, Congress enacted a bipartisan bill to ensure continued financial stability, enhance consumer protections, and provide regulatory right-sizing. Passage of S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, brought the pendulum back toward the center, offering targeted relief to put financial institutions back in the business of serving their customers and the American economy.” [House Financial Services Committee, accessed 01/10/23]
- McHenry “Pushed For The Swift Implementation” Of S. 2155. “Republican leader of the House Financial Services Committee, Patrick McHenry (NC-10), has pushed for the swift implementation of this change in public law, notably the Volcker Rule, community bank capital simplification, tailoring for banks with more than $50 billion in assets, and improvement to the Supplemental Leverage Ratio for custody banks, among others.” [House Financial Services Committee, accessed 01/10/23]
May 2018: Rep. McHenry Voted For Passage Of S. 2155, The Economic Growth, Regulatory Relief, and Consumer Protection Act, Which Became Law In May 2018. [Clerk of the U.S. House of Representatives, 05/22/18]
- S. 2155 Became Law On May 24, 2018. [Congress.gov, accessed 01/10/23]
S. 2155 Sought To “Considerably Weaken” Dodd-Frank Financial Reforms “Designed To Tame Wall Street, Protect Consumers And Make Our Financial System Less Fragile." "The bill, S. 2155, would considerably weaken the Dodd-Frank Wall Street Reform and Consumer Protection Act, the law President Barack Obama signed in 2010, which was designed to tame Wall Street, protect consumers and make our financial system less fragile." [CNN, 03/05/18]
The Bill Raised The Threshold For A Bank To Be Considered Systematically Important From $50 Billion To $250 Billion In Assets. “The bill’s most controversial provision would increase the threshold from $50 billion to $250 billion for a bank to be considered systemically important. These so-called 'too big to fail' banks must undergo mandatory Fed ‘stress tests’ every year, complete a 'living will' directing how they could be wound down safely if they failed, and face other stricter safety rules. Just about everyone seems to agree that $50 billion was too low a threshold, inundating banks that don’t really pose systemic risks and don’t really need living wills with heavy compliance costs and headaches. But many experts believe $250 billion is too high.” [Politico, 11/08/18]
The Bill Also Weakened “Anti-Discrimination Standards In Housing By Raising The Number Of Loans A Bank Can Make Before It’s Required To Report On The Issue.” “[Former Congressman Barney Frank] criticized a provision in the bill that he said weakens anti-discrimination standards in housing by raising the number of loans a bank can make before it’s required to report on the issue. Another provision that he singled out allows foreign megabanks, such as Deutsche Bank and HSBC, to put their American assets into a separate holding company to avoid US regulatory scrutiny.” [Vox, 03/14/18]
¶ Rep. Patrick McHenry Was An Ardent Supporter Of The Tax Cuts And Jobs Act, Which Slashed Corporate Taxes By 40% And Predominantly Benefited The Wealthy.
¶ Rep. McHenry Voted For, And Actively Promoted, The Tax Cuts And Jobs Act, Trump’s “Signature Legislative Achievement” Which Slashed Corporate Taxes By 40% And Predominantly Benefited The Wealthy.
November 2017: The Day The House Version Of The Tax Cuts And Jobs Act Was Introduced, Rep. McHenry Issued A Statement Claiming The Bill Would “Provide Real Middle Class Tax Relief.” “Today, Chief Deputy Whip Patrick McHenry (NC-10) released the following statement on introduction of H.R. 1, the Tax Cuts and Jobs Act, House Republicans bill to reform our nation's tax code: ‘Americans need a tax code that grows the middle-class, increases American competitiveness, and creates good-paying jobs. Today, House Republicans introduced a plan that will do that. The Tax Cuts and Jobs Act provides real middle class tax relief.’” [Rep. Patrick McHenry, 11/02/17]
McHenry Made Multiple Cable News Appearances To Promote The Bill. “Also on Thursday, McHenry joined Fox Business' Varney & Co. to discuss how the Tax Cuts and Jobs Act will help middle class families and small businesses in western North Carolina. [...] Yesterday, McHenry joined CNBC's Power Lunch to discuss the House Republican tax reform plan.” [Rep. Patrick McHenry, 11/02/17]
The Tax Cuts And Jobs Act Of 2017 (TCJA), “Passed With Only Republican Votes,” Was The Trump Administration’s “Signature Legislative Achievement.” “The Tax Cuts and Jobs Act of 2017, passed with only Republican votes, became the signature legislative achievement of the Trump administration. Tax rates for individuals and corporations were cut, new incentives were created, the standard deduction and estate tax exemption were increased, and the U.S. moved toward a territorial tax system.” [Bloomberg, 01/26/21]
- December 2017: Rep. McHenry Voted For Passage Of The Tax Cuts And Jobs Act. [The New York Times, 12/19/17]
The TCJA Was Estimated To Cost $1.5 Trillion. “It’s time to put to rest any notion that President Trump’s signature tax cuts are paying for themselves. Anyone who says otherwise is lying with numbers. A year after the $1.5 trillion tax-cut package took effect, economic growth has accelerated, just as Republicans promised it would when pushing the law through Congress.” [The New York Times, 01/11/19]
Although The Trump Administration Claimed The TCJA Tax Cuts Would Help Working People, A Tax Policy Center Analysis Found That 60% Of Their Benefits Went To The Top 20% Of Earners, In Addition To Cutting Corporate Taxes By 40%. “Passed on a party-line vote, the tax cut is the signature legislative accomplishment of President Trump's first term. He had campaigned hard for the measure, promising it would boost paychecks for working people. In fact, more than 60% of the tax savings went to people in the top 20% of the income ladder, according to the nonpartisan Tax Policy Center. The measure also slashed the corporate tax rate by 40%.” [NPR, 12/20/19]