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November 7, 2017

House Financial Services Committee Republicans Misleadingly Quote Better Markets

FOR IMMEDIATE RELEASE
Tuesday, November 7, 2017
Contact: Nick Jacobs, 202-618-6430 or njacobs@bettermarkets.com

Washington, D.C. – Dennis Kelleher, president and CEO of Better Markets, released this statement following a misleading quote by Republicans on the House Financial Services Committee in connection with the introduction of a new bill:

“House Financial Services Committee Republicans take a partial, out-of-context quote from Better Markets in 2015 to misleadingly create the impression that the organization supports a bill being introduced today. 

“The quote attributed to Better Markets was taken from a release we issued in 2015 when a bill by Senators Warren and Vitter was introduced.  The House Republican bill introduced today is dramatically different than the Warren-Vitter bill.  For example, all Fed emergency lending programs would have to be approved by a supermajority of the Fed Open Market Committee and, within 30 days, by expedited majority votes in the House and the Senate.  Requiring such action in the context of a fast-moving, catastrophic financial crisis in the future where information will be incomplete, ambiguous and continually changing will almost certainly result in political paralysis and cripple the Fed’s ability to respond to emergencies.

“The 2015 Warren-Vitter bill was designed to limit the Fed’s use of its unfettered emergency lending authority to bail out one or a few institutions like AIG or Bear Stearns or provide that assistance at non-penalty rates.  That bill would have required such extraordinary Congressional action only if fewer than five institutions were eligible for an emergency lending program or if the required penalty rate was not imposed.  Since then, the Fed limited its emergency lending authority in a final rule, which adopted key provisions from the Warren-Vitter bill.”

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies – including many in finance – to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.com.

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