By Peter E. Feltman, M.A., CCH Washington News Bureau, and Rick Nelson, APR, NAMIC, contributing authors, CCH FOCUS.
anking, securities and insurance will now be handled by the new Committee on Financial Services, formerly the Banking Committee, in the House of Representatives, under a plan approved by the full House on January 3, 2001.
“In light of the enactment of the Gramm-Leach-Bliley Act, it is understandable that Congress is seeking to consolidate jurisdiction over all affected industries under one committee,” said Pam Allen, National Association of Mutual Insurance Companies vice president-federal affairs. Allen added that NAMIC anticipates “familiarizing the members of the new committee with the business of insurance.”
The House Rules package for the 107th Congress would:
• establish a new Committee on Financial Services;
• transfer jurisdiction for insurance and securities from the former Commerce Committee to the new Financial Services Committee; and
• rename the Commerce Committee as the Energy and Commerce Committee.
“We applaud the decision of the House Republican Conference in selecting Mike Oxley as the chair of the new Financial Services Committee,” said NAMIC’s Allen “He demonstrated effective leadership with his stewardship of the financial services reform legislation through the last Congress.
“He is an excellent choice for chairman of a new committee that will have issues that overlap the three industries of securities, banking and insurance. No doubt, there will be many complex problems to solve as the financial services industry becomes increasingly global in nature. NAMIC looks forward to working with Chairman Oxley and the members of his new committee,” said Allen.
Oxley also received congratulations from President-Elect George W. Bush. Oxley returned a congratulatory telephone call from Bush on January 5, reaching the President-Elect at his ranch in Texas. The two discussed Oxley’s new chairmanship, and Oxley pledged to work with the incoming Administration on its agenda for areas under the purview of the Committee. Bush asked Oxley to meet as soon as practical with Federal Reserve Chairman Alan Greenspan, Treasury Secretary nominee Paul O’Neill, and the yet-to-be-named chairman of the Securities and Exchange Commission.
U.S. Rep. Richard H. Baker, responded to the chairmanship voting by praising the selection process, applauding the policy opportunities created by the expanded Financial Services Committee, and welcoming Rep. Michael Oxley to the committee. He stated, “Speaker Hastert and Steering Committee members should be congratulated for creating a chairmanship-selection process which, in my opinion, was exceptional in its fairness to all candidates and a personal honor in which to participate. This democratic process demonstrated our Republican Caucus’ commitment to putting together a leadership team singularly focused on adopting the best merit-based public policy.
“It’s a distinct honor to be able to work with Congressman Mike Oxley. I know Mike to be a serious lawmaker and the type of leader who can build consensus and rally people together around solid principles. His expertise on key policy areas will help point the way for all of us to follow.
“I also wish to congratulate my colleague Congresswoman Marge Roukema on a spirited campaign. Her experience and wisdom I know will continue to serve our committee well, and I look forward to working as a strong, united and close-knit team with Marge and Mike and all committee members on both sides of the aisle.”
Roukema, however, stated that she is “gravely disappointed at the decision of the Steering Committee.” She added, “However, I will be gracious and a good sport as a member of the Republican Team. I pledge to continue my services on the Committee and assure with my knowledge and experience that we protect the safety and soundness of financial services and assure that we continue supplementing the good economy with sound monetary policy.”
Apparently, the chair position was a contributing factor in the committee shift, because a number of members were competing for the chairpersons of both committees due to the six-year term limit facing the previous chairs.
Roukema noted on January 2 that she was the number two member in seniority on last year’s Banking Committee, behind former Chairman James A. Leach, “My extensive legislative experience, including consideration of issues relating to securities and insurance, have prepared me for this task,” she stated. Some observers feel that Roukema is too moderate for the Republican Leadership, which preferred to reward Oxley, and in the process avoid a battle between Oxley, who has more seniority as a Republican than former democrat Tauzin, for the Energy and Commerce seat.
Representative John D. Dingell, called the decision to move jurisdiction of securities to the Financial Services Committee “wholly partisan” as well as “misguided and asinine.” Dingell, the top democrat on the Energy and Commerce Committee, in a passionate floor speech on January 3, said that given the Banking Committee’s past oversight of the savings and loan industry, he fears it will inadequately police the securities industry.