WASHINGTON – The role of anti-regulatory, free-marketer on the House Financial Services Committee has apparently been passed to Texas Republican Jeb Hensarling, who has been called the “Dr. No” of the banking panel.
Hensarling first came to the attention to credit unions during 2005 hearings on NCUA’s bid to block the controversial conversion to a mutual savings bank by Texas’ Community CU. Hensarling was one of a handful of congressmen during the hearing to criticize NCUA’s handling of the disputed ballot.
The Texas lawmaker has stepped out as an ally of the banks against attempts to reign in subprime mortgages, tighten controls on credit card practices, and other consumer initiatives by the Democrats who control the Financial Services Committee. The three-term lawmaker last week expressed misgivings regarding proposals to bar certain credit card practices, saying they are unneeded.
Ironically, Hensarling, a one-time aide to Texas Sen. Phil Gramm, spoke out against efforts to bring regulatory relief to credit unions during last month’s hearing on the CU Regulatory Improvements Act. He said he is not convinced credit unions should have expanded member business loan powers. “I’m not persuaded of the need for CURIA yet," said Hensarling.
The Texas lawmaker has had strong financial support from the banks in recent weeks. According to Federal Election Commission filings, he received contributions from Visa ($5,000); Experian ($5,000); Wells Fargo $6,600); (JP Morgan Chase ($2,000); Wachovia ($400) and his Jobs, Education & Budget (JEB) leadership PAC got contributions from Bank of America ($5,000) Mortgage Bankers Association ($5,000), Online Lenders Association ($3,000) and Pawnbrokers Association ($4,500).
Through the first part of the current election cycle, Hensarling’s biggest donors are: the American Bankers Association ($10,000); AT&T ($10,000); Bank of America ($10,000) and Friends of Phil Gramm ($10,000). CUNA has contributed $3,500 to Hensarling, and contributed $9,500 to him in the last election.
