Where Members of the 116 Congress Stand on Financial Reform
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Where Members of the 116th Congress Stand on Financial Reform Votes cast in the 116th Congress (January 2019 through November 2020) (Public domain image, via Wikimedia Commons) Americans for Financial Reform Education Fund November 2020 November 2020 TABLE OF CONTENTS TABLE OF CONTENTS ii INTRODUCTION 1 BILL SUMMARIES 4 Consumer Protections and the CFPB 4 Housing 11 Other 14 VOTING SUMMARIES 15 House of Representatives 15 House Financial Services Committee Representatives 15 U.S. Senate 16 ONLINE APPENDICES House Floor Votes House Financial Services Committee Votes Senate Votes ii Where Members of the 116th Congress Stand on Financial Reform November 2020 INTRODUCTION This report documents how Members of major regulatory response to the 2008 Congress have voted on consumer financial crisis that created the regulatory protections, Wall Street, and financial framework underpinning the longest period industry legislative measures during the in U.S. history without a recession. 116th Congress (2019 and 2020). The report In addition to signing all Wall Street includes a selection of important bills and deregulatory legislation passed by the 115th amendments aimed at shaping the U.S. Congress, the Trump administration filled financial system and regulatory landscape regulatory positions with bankers, industry and establishing priorities on how and for lobbyists, and politically connected allies. whom the U.S. economy should work. These officials have gutted major financial The votes on these bills show when regulations, including longstanding anti- lawmakers voted to protect workers, discrimination laws and a major rule to curb consumers, student borrowers, retirees, high-interest, predatory payday loans. investors, small businesses, and the integrity President Trump has suggested that bankers of the financial system and when they chose should thank him for his laissez faire to prioritize the profits and wealth of Wall approach to financial deregulation and for Street insiders and the financial industry. slashing corporate taxes—big banks were some of the largest beneficiaries of the tax During the 116th Congress beginning in cuts receiving a $32 billion windfall. January 2019, the House majority advanced measures to strengthen existing consumer The current Democratic House majority has protections and to put in place enforcement taken a different approach to financial tools to hold bad actors in the financial regulation. The more than 80 bills passed by industry accountable for abusive and the HFSC included measures aiming to fraudulent practices. Most of those measures restore the regulatory muscle of the CFPB; began in the House Financial Services improve the credit reporting system; tackle Committee (HFSC). the homelessness crisis; promote diversity and inclusion in the financial industry; and During the previous Congress, the to protect the rights of student borrowers, Republican-led House of Representatives small business, and retail investors. The advanced over forty major bills deregulating HFSC also advanced legislation to block the financial system (as detailed in the dangerous rules proposed by Trump previous version of this report). This appointees to advance the Administration’s deregulatory push aimed at carving racist, xenophobic, and transphobic agenda. loopholes that could be abused to escape regulation as well as revoking specific Over 60 bills reported by the HFSC also provisions of the Dodd-Frank Act—the passed the House of Representatives. 1 Where Members of the 116th Congress Stand on Financial Reform November 2020 Notable examples included the consumer abuses such as opening millions Comprehensive CREDIT Act, a legislative of fraudulent accounts and improperly package sponsored by Rep. Ayanna Pressley charging customers for auto insurance and (D-MA) and including provisions by several mortgage fees, and another one examining other members to overhaul the credit the predatory practices and parasitic reporting system in order to protect business model of the private equity consumers’ data and to give them additional industry. options to manage their credit scores and The private equity hearing was focused on dispute incorrect information in their credit the Stop Wall Street Looting Act, a bill to reports; and the Consumers First Act, curb abuses from the private equity industry introduced by Rep. Maxine Waters (D-CA) introduced in the House by Representatives to refocus the Consumer Financial Mark Pocan (D-WI), Pramila Jayapal (D- Protection Bureau (CFPB) on its mission of WA), Jesús G. “Chuy” García (D-IL), Raúl protecting consumers from deceptive and M. Grijalva (D-AZ), Ro Khanna (D-CA), abusive financial practices by corporations. Barbara Lee (D-CA), Ayanna Pressley (D- The Republican-led U.S. Senate, on the MA), Janice D. Schakowsky (D-IL), and other hand, considered almost no financial Rashida Tlaib (D-MI); and introduced in the services legislation during the 116th Senate by Senators Elizabeth Warren (D- Congress. Other than a House joint MA), Sherrod Brown (D-OH), Bernie resolution to overturn a rule by the Office of Sanders (I-VT), Tammy Baldwin (D-WI), the Comptroller of the Currency to weaken and Kristen Gillibrand (D-NY). the Community Reinvestment Act, none of The Stop Wall Street Looting Act was also over 60 bills that started in the HFSC and one of several legislative measures passed the House—50 of which passed with challenging inequitable features of the broad bipartisan support—received a single financial system that were the subject of a hearing or floor vote in the Senate. Majority hearing, but were not marked up. Another Leader Mitch McConnell (R-KY) has also was the Veterans and Consumers Fair Credit ignored important financial services-related Act, a bill that would establish a 36 percent legislation advanced by other House interest rate cap to end abuses in payday and committees, such as the Forced Arbitration car title lending and introduced in the House Injustice Repeal (FAIR) Act, which bans by Representatives Chuy García, Glenn forced arbitration clauses in consumer, civil Grothman (R-WI), Sylvia Garcia (D-TX), rights, and employment disputes. and Al Green (D-TX). The HFSC also held important hearings on a The HFSC also played an important role in number of issues that did not result in the the legislative response to the COVID-19 passage of legislation this session. These crisis. Committee Members drafted key included one where Wells Fargo executives consumer protection, housing, and were called to testify to explain the bank’s accountability provisions, many of which myriad of management deficiencies and were included in the Coronavirus Aid, 2 Where Members of the 116th Congress Stand on Financial Reform November 2020 Relief, and Economic Security (CARES) tables offer a simple way of viewing the Act, the major legislative package approved position taken by each House Member on by the House to respond to the coronavirus the bills included in this report. There are pandemic and provide essential relief and separate tables for HSFC votes and for votes protections for families across the country. on the House floor. The CARES Act became public law in The last section offers summaries of the March 2020. online appendices, highlighting those House ────── Members who consistently stood up for the public interest and consumer protections and The remainder of this report is divided in those who most often sided with Wall Street two sections. The first offers a summary of and the financial industry. This voting each of the selected bills grouped in three analysis includes only one Senate vote broad categories—Consumer Protections because no other financial reform legislation and the CFPB; Housing; and Other. The was brought to the Senate Banking summaries include a short description of the Committee or to floor of the Senate by Chair bills, the latest congressional action taken in Crapo (R-ID) or Majority Leader each case, and links to the official record of McConnell. votes cast, the official text of the proposals, and an AFR letter discussing our support or Together, the summaries in this report and opposition to the bill. the votes compiled in the online appendices tell the story of where Members of the 116th The recorded roll call votes are tabulated in Congress stand on issues of financial the online appendices to the report. These regulation. 3 Where Members of the 116th Congress Stand on Financial Reform November 2020 BILL SUMMARIES Consumer Protections and the CFPB Consumers First Act. H.R. 1500. Small Business Lending Fairness Act. Committee vote no. 25. House floor vote H.R. 3490. Committee vote no. 98. no. 228. H.R. 3490 protects small businesses against H.R. 1500 refocuses the Consumer Financial “confession of judgement” provisions in Protection Bureau on its mission to protect loan contracts. The bill prohibits this unfair consumers and restores the structures the credit practice frequently used by predatory Bureau needs to fight discrimination in lenders to force borrowers to give up their lending, address the student debt crisis and right to defend themselves in court before hold companies accountable for offering the lender can unilaterally seize assets. predatory financial products or engaging in AFR supported this bill. other deceptive acts and practices. The CFPB mission has been gravely undermined Introduced by Rep. Nydia Velazquez (D-NY- under Trump Administration appointees 7), H.R. 3490 was approved by the House Mick Mulvaney and Kathy Kraninger. This Committee on Financial Services on bill reallocates the CFPB’s staffing and November 13, 2019 by a vote of 31–23. resources back to carrying out its statutory ────── purpose of putting consumers first and protecting them from abusive financial Restricting Credit Checks for practices. Employment Decisions Act. H.R. 3614. Committee vote no. 42. AFR supported this bill. H.R. 3614 prohibits the use of consumers’ Introduced by Rep. Maxine Waters (D-CA- credit information for employment 43), H.R. 1500 was approved by the House decisions—except in cases required by law Committee on Financial Services on March or for national security clearances.