Introduction
If Wall Street had a babysitter, it would be the U.S. House Financial Services Committee. Serving as the congressional watchdog for the nation’s financial nerve centers, this committee ensures that the economic engine doesn’t run wild without supervision. From overseeing insurances to urban development, this committee doesn’t play when it comes to financial legislation.
Committee Composition and Leadership
Imagine a family reunion, but instead of relatives, there are 60 congressmen and women, mostly Republicans, ready to debate financial policies. Each member is elected to bring order to the U.S.’s financial playground. Leading the team is Congresswoman Maxine Waters, a Democrat from California, as the chairwoman, with Patrick McHenry from North Carolina as the Republican counterpart.
Functions
What does the committee actually do? Well, if there was an ‘Olympics’ for overseeing federal financial sectors, this committee would be the perennial gold medalist. From dictating the dos and don’ts in international finance to setting the rulebook for the insurance industry, they ensure that the financial sectors are playing by the rules. They also have a say in how wasteful spending and abuses of power are checked, making them the ‘financial police’ of Capitol Hill.
Historical Perspective
Travel back to 1865 — a time when the committee was first formed (then known as the Committee on Banking and Currency). Its mission? To inherit the colossal duty from the Ways and Means Committee of regulating banking and currency matters. By 1968, it got a moniker refresh and became known as the House Financial Services Committee just to make sure the name fits its broadened responsibilities like a glove.
Key Areas of Focus
More recently, in 2018, the committee hasn’t just been warming the benches. They’ve been proactive about rewriting the Dodd-Frank Act, wrestling with the Federal Reserve for more transparency, and keeping a vigilant eye on activities ranging from money laundering to the economic impacts of homelessness and even the future disruptions by driverless cars.
Invite to Action
Curious about how legislative levers impact financial scales? Maybe this committee observes more than you think. They are not only about strict regulations but ensuring smoother financial operations for the average Joe and Jane.
Related Terms
- Dodd-Frank Act: Legislation enacted in 2010 to prevent the repeat of the 2008 financial crisis.
- Federal Reserve Oversight: The committee’s check on America’s central bank ensuring it operates within the bounds of the law.
- Urban Development: Involves the revitalization of urban areas, also under the committee’s purview.
Suggested Reading
- “The Creature from Jekyll Island” by G. Edward Griffin — A deep dive into the Federal Reserve’s complexities.
- “Capital in the Twenty-First Century” by Thomas Piketty — Explores economic systems and the impact of financial laws.
Embrace your inner econ enthusiast and delve deeper into fiscal responsibilities and regulations that shape the financial landscape of the U.S.
