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Texas Congressman's Plans Put Wall Street on Edge

Texas Congressman's Plans Put Wall Street on Edge →

From Patrick O'Connor, at the Wall Street Journal:

During Jeb Hensarling's first congressional bid, a man at a campaign stop in Athens, Texas, asked the Republican if he was "pro-business."

"No," the candidate replied, drawing curious stares from local business leaders who had gathered to hear him speak, a former Hensarling aide recalled. "I'm not pro-business. I'm pro-free enterprise."

Now, more than a decade later, that distinction has Wall Street on edge. The new chairman of the House financial services committee wants to limit taxpayers' exposure to banking, insurance and mortgage lending by unwinding government control of institutions and programs the private sector depends on, from mortgage giants Fannie Mae and Freddie Mac to flood insurance.

Banks and other large financial institutions are particularly concerned because Mr. Hensarling plans to push legislation that could require them to hold significantly more capital and establish new barriers between their federally insured deposits and other activities, including trading and investment banking.

A Republican who wants to make banks play by the same rules as the rest of a us? A Republican who wants to lets bad businesses fail? A Republican who believes it's a profit and loss system not just a profit system? Okay, I can buy that. But how'd he get to be chair of the House financial services committee? That seems too good to be true.

I'll have to keep an eye on Congressman Hensarling.

This entry was tagged. Capitalism Reform