House banking's top Republican calls for hearing on Brexit impact

WASHINGTON — Rep. Patrick McHenry, the top Republican on the House Financial Services Committee, this week called on Democratic leadership to prioritize Britain’s withdrawal from the European Union, among other "critical areas" that he said deserve the panel's attention.

In a letter sent Tuesday to Chairwoman Maxine Waters, D-Calif., McHenry said the committee should spend the first months of the new Congress largely on global financial issues and their effects on the U.S. economy.

“These hearings will be vital to helping ensure the strength and stability of the U.S. financial system and the global competitiveness of American job creators,” he said.

Andrew Harrer/Bloomberg

In particular, the North Carolina Republican requested that the committee hold hearings on the impact of Brexit on the U.S. economy and the international financial system, cybersecurity risks, the Treasury Department's implementation of the Foreign Investment Risk Review Modernization Act of 2018, and how China's economy affects the World Bank and global systemic risk.

As reported, Brexit has essentially put a hold on credit union priorities in Britain for more than two years as lawmakers there hammer out a deal to leave the EU. Among the issues CUs across the pond are facing are how to deal with members from EU nations living in Britain, what the Irish "backstop" will mean for credit unions along the Ireland-Northern Ireland border and more.

More hearings?

McHenry also called for a number of oversight hearings, including to examine the Bank Secrecy Act and anti-money laundering regulations, the government conservatorship of mortgage giants Fannie Mae and Freddie Mac, the Current Expected Credit Loss standard, and fintech regulation.

“While by no means an exclusive list, these hearings would give the Committee — especially its newest Members — the opportunity to better understand the complex legislative landscape we face this Congress,” McHenry said.

Waters outlined her own priorities as chair of the committee last week during a speech at the Center for American Progress, saying that homelessness and affordable housing were among her top agenda items.

But Waters also said she plans to work with McHenry and other Republican members of the committee on legislation to improve access to capital for startup firms, including fintech companies, and to promote transparent standards for corporate insiders.

“I will work with those on the opposite side of the aisle who want to work on issues that we are alluding to," she said in her remarks. "But of course, if they don’t, I have the gavel.”

While the committee has yet to schedule any hearings this year, Waters is planning to call the CEOs of Equifax, Experian and TransUnion to testify at a Feb. 26 oversight hearing, according to Politico.