During a press conference on Tuesday, Rep. Maxine Waters (D-Calif.), the committee’s ranking member, appeared to cast doubt on the idea that overregulation was a problem.
“One of the arguments that the Republicans have been effective in advancing is overregulation, and oftentimes I’m confronted with questions about, ‘When are you guys going to do something about the overregulation of community banks? When are you guys going to deal with the fact that you should be concerned about the fact that the economy does not work as well because of too many regulations?’” Waters said. “And it seems that too many folks have bought into that, and I’m oftentimes asked this over and over again by the media.”
Waters’ comments quickly drew the ire of committee Chairman Jeb Hensarling (R-Texas), who said community banks were “an endangered species thanks to Washington’s regulatory waterboarding.”
“With all due respect to the ranking member of my committee, this is no myth; this is the reality that hardworking Americans live with every day,” Hensarling said. Excessive regulation is taking way their opportunities to make a better life for themselves and achieve financial independence.”
Hensarling also challenged other Democrats on their positions toward regulation.
“(Waters) made these comments standing alongside Nancy Pelosi and Elizabeth Warren,” Hensarling said. “The question must be asked: Do they and other Democrats also believe that overregulation of community banks is a myth?”
Cordray should commit to full term or quit CFPB now – Hensarling
Democrats fight back against Dodd-Frank replacement
Top lawmakers are clashing over the regulation of small banks, with the House Financial Services Committee’s top Democrat saying that the idea that community banks are overregulated is a myth that too many “have bought into.”