Committee on Financial Services

Committee on Financial Services
Name	Committee on Financial Services
Chamber	United States House of Representatives
Established	1865
Jurisdiction	United States financial system
Chairman	Maxine Waters
Ranking member	Patrick McHenry
Seats	45

Contents

Committee on Financial Services is a standing committee of the United States House of Representatives with responsibility for legislation and oversight related to the United States financial system, banking, securities regulation, insurance, and related matters. It plays a central role in shaping policy after major events such as the Great Depression, the Savings and Loan crisis, the Financial crisis of 2007–2008, and legislative responses like the Glass–Steagall Act and the Dodd–Frank Wall Street Reform and Consumer Protection Act. Members engage with agencies including the Federal Reserve System, the Securities and Exchange Commission, the Federal Deposit Insurance Corporation, and the Consumer Financial Protection Bureau.

History

The committee traces origins to the post‑Civil War era within the United States House of Representatives when Congress responded to issues tied to National Banking Acts and the Panic of 1873. Over time its remit expanded through interactions with landmark statutes such as the Glass–Steagall Act of 1933, the Bank Holding Company Act of 1956, and the Gramm–Leach–Bliley Act of 1999. The panel was central during hearings on the Savings and Loan crisis of the 1980s and the run‑up to the Financial crisis of 2007–2008, influencing bipartisan measures including the Dodd–Frank Wall Street Reform and Consumer Protection Act. Chairpersons and members have included figures prominent in finance policy debates, appearing alongside officials from the Treasury Department, the Federal Reserve Board, and international institutions like the International Monetary Fund and the Bank for International Settlements.

The committee exercises jurisdiction over statutes governing banking in the United States, deposit insurance, securities and exchanges, mortgage finance, insurance regulation, and international finance. It oversees federal agencies such as the Federal Reserve System, the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Consumer Financial Protection Bureau. Through its power to report legislation, conduct investigative hearings, and issue subpoenas, the committee influences implementation of laws like the Sarbanes–Oxley Act and the Dodd–Frank Wall Street Reform and Consumer Protection Act, and shapes responses to crises exemplified by the Great Recession and episodes involving institutions such as Lehman Brothers, AIG, and Fannie Mae.

Membership comprises Representatives from diverse districts and includes chairs and ranking members appointed by the Democratic Party (United States) and the Republican Party (United States). Leadership has featured chairs like Henry B. Gonzalez, Barney Frank, Spencer Bachus, and Maxine Waters, each coordinating with committee staff, the House Majority Leader, the House Minority Leader, and other committees including the House Committee on Ways and Means and the House Financial Services Committee's counterparts in the United States Senate Committee on Banking, Housing, and Urban Affairs. Members often possess backgrounds linked to institutions such as the Federal Reserve Bank of New York, investment banks like Goldman Sachs and JPMorgan Chase, and regulatory law firms.

The committee structures work through subcommittees addressing specialized areas: examples include subcommittees on Capital Markets, Consumer Protection and Financial Institutions, Housing and Insurance, and National Security, International Development, and Monetary Policy. These subpanels interact with entities such as the International Monetary Fund, the World Bank, the European Central Bank, and domestic agencies including the Department of Housing and Urban Development and the Treasury Department's Office of Financial Research. Subcommittees conduct focused oversight of programs like the Troubled Asset Relief Program and institutions including Fannie Mae and Freddie Mac.

The committee drafts, amends, and forwards major bills addressing banking reform, market structure, consumer finance, and housing finance, impacting statutes such as the Dodd–Frank Wall Street Reform and Consumer Protection Act, the Sarbanes–Oxley Act, and amendments to the Tax Cuts and Jobs Act of 2017 affecting financial markets. It oversees implementation by agencies including the Securities and Exchange Commission, the Federal Deposit Insurance Corporation, and the Consumer Financial Protection Bureau, and has led inquiries into conduct by firms such as Goldman Sachs, Citigroup, Morgan Stanley, and Bank of America. Collaboration and conflict with the United States Senate Committee on Banking, Housing, and Urban Affairs have shaped reconciliation of bill text and appropriations related to financial stability.

The committee holds public hearings and investigative sessions featuring witnesses from the Federal Reserve Board, the Securities and Exchange Commission, corporate executives from Lehman Brothers, AIG, and Bear Stearns, consumer advocates from groups like Consumer Reports and National Consumer Law Center, and officials from the Treasury Department and the Office of the Comptroller of the Currency. Notable hearings include examinations of the Financial crisis of 2007–2008, probes related to the LIBOR scandal, and oversight of implementation of the Dodd–Frank Wall Street Reform and Consumer Protection Act and rule‑making by the Consumer Financial Protection Bureau. Investigations have produced testimony, staff reports, and recommendations affecting enforcement actions by the Department of Justice and settlements with firms such as Wells Fargo and Deutsche Bank.