Among the leadership changes in Congress, beginning in January, Rep. Jeb Hensarling (R-Texas), a fierce critic of the 2010 Dodd-Frank Act, is set to take over as chairman of the House Financial Services Committee.
Hensarling was recommended by the House Republican Steering Committee, which is expected to confirm the decision as soon as this week. Chairman Spencer Bachus of the HFSC is set to depart from the position as he nears the end of his term limit, and Rep. Barney Frank (D-Mass.) is preparing to retire, Pensions & Investments reports.
Hensarling maintains that Dodd-Frank’s capital requirements force firms and financial institutions to hold on to extra cash.
“This money is not being used for investment and job creation because of—not in spite of—Dodd-Frank,” Hensarling said in a Politico editorial calling for the law’s repeal, according to Pensions & Investments.
Neal Simon, the vice president for government relations at Investment Adviser Association, said that the law’s repeal is “extremely unlikely, although there might be some effort to nibble around the edges.”
Hensarling, who voted against the 2008 taxpayer-funded bank bailouts, currently serves as the chairman of the House Republican Conference and the vice chairman of the HFSC. He will leave when he becomes the chairman at the HFSC. Hensarling also co-chaired the “supercommittee” put together one year ago to handle the national deficit, Pensions & Investments reports.