Jeb Hensarling: “I rise, today, in strong support of H.R. 4296, an important bill authored by Mr. Luetkemeyer, who is a real leader on…”

“I rise, today, in strong support of H.R. 4296, an important bill authored by Mr. Luetkemeyer, who is a real leader on our committee. He is the chairman of the Subcommittee on Financial Institutions and Consumer Credit and has led many bills on this floor. This particular one addresses the burden that unnecessary operational capital requirements have imposed on our financial institutions and then, consequently, on our hardworking families and small businesses that are seeking credit. The Basel Committee requires U.S. financial institutions to hold excessive capital based upon a look-back approach to an organization's risk, previous earnings, and other provisions that provide no indication of future risk. Again, Mr. Speaker, this is about holding operational capital for past activities. This methodology employed by the international standard setters has forced our banks to hold hundreds of billions of dollars in reserve rather than putting that money to work in the real economy--in loans and investments--for people to buy cars, to launch small-business enterprises, or maybe to make a downpayment on that first home. Again, Mr. Speaker, let me say it so that all can hear. Hundreds of billions of dollars is currently sitting in banks across the country not being utilized to fund mortgage loans, car loans, and other day-to- day financing that American families and individuals demand.…”