Committee Chairman, Jeb Hensarling (R-TX), opened with his assessment that the Dodd-Frank Act has enshrined taxpayer-funded bailouts. In his remarks, Representative Hensarling took the view that the designation of a firm as being “systemically important” was equivalent to identifying them as “too big to fail” and thus as likely recipients of a government bailout if they did fail. He also indicated that certain of the government’s existing guarantee programs were in significant debt, including the pension benefit guaranty corporation, which he argued demonstrated the inability of the government to assess and control risk.
Witnesses before the Committee:
- The Honorable Thomas Hoenig, Vice Chairman, Federal Deposit Insurance Corporation;
- Mr. Richard W. Fisher, President and Chief Executive Officer, Federal Reserve Bank of Dallas;
- Mr. Jeffrey Lacker, President and Chief Executive Officer, Federal Reserve Bank of Richmond; and
- The Honorable Sheila Bair, Chair, Systemic Risk Council, Pew Charitable Trust.