Exploring the U.S. House Financial Services Committee: Key Responsibilities and Impact

The U.S. House Financial Services Committee is the congressional entity responsible for developing and overseeing legislation pertinent to financial services and housing industries within the United States. Every committee member is an elected representative of the U.S. House of Representatives.

Committee members supervise financial aid allocated to industry and commerce, international finance, the insurance sector, securities and exchanges, urban development, and much more.

Chaired by Maxine Waters, a Democratic congresswoman from California, the committee consists of 60 members with a Republican majority. The ranking member is Patrick McHenry, a Republican from North Carolina.

Understanding the U.S. House Financial Services Committee

The committee exercises oversight over crucial federal departments including the Department of the Treasury, the U.S. Department of Housing and Urban Development, the Federal Reserve, and the U.S. Securities and Exchange Commission. Additionally, it has governance over government-sponsored entities such as Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation).

Initially founded in 1865 to undertake responsibilities managed by the Ways and Means Committee, it was called the Committee on Banking and Currency before being renamed the House Financial Services Committee in 1968.

Shaping the Future: The Committee’s Current Focus

In 2018, key issues at the forefront of the committee’s agenda include a strategic replacement of the Dodd-Frank Act—a significant piece of legislation introduced in response to the 2008 financial crisis that enforced extensive regulation and oversight over the banking industry. The committee seeks to modify this bill to ease regulations and facilitate greater access to home mortgages, small business initiatives, and essential banking services like free checking.

Another principal focus area is enhancing oversight and promoting transparency within the Federal Reserve, the central bank of the United States. The committee has introduced a legislative bill to formalize these changes, though it remains pending approval.

Moreover, the committee tackles matters of tax dollar waste, power abuse, and fraud within all federal programs it oversees. A confidential reporting mechanism has been established to allow citizens to report these issues directly to the committee discreetly.

Recent committee hearings have spotlighted various critical topics like combating money laundering, addressing homelessness in the United States, and exploring the implications of driverless cars on the auto insurance industry.

Related Terms: Department of the Treasury, Federal Reserve, Dodd-Frank Act, Money Laundering, Financial Crisis of 2008.

References

U.S. House Committee on Financial Services. “About Us”.
U.S. House Committee on Financial Services. “Committee Membership”.
U.S. House Committee on Financial Services. “Jurisdiction”.
National Archives. “Records of the Banking and Currency Committees”.

Get ready to put your knowledge to the test with this intriguing quiz!

--- primaryColor: 'rgb(121, 82, 179)' secondaryColor: '#DDDDDD' textColor: black shuffle_questions: true --- ## What is the primary function of the U.S. House Financial Services Committee? - [ ] Managing the federal budget - [ ] Regulating trade between states - [x] Overseeing the financial services industry, including the issues related to banking, insurance, and securities - [ ] Enforcing labor laws ## Which of the following areas does the U.S. House Financial Services Committee have jurisdiction over? - [ ] Environmental regulation - [x] Banking and financial institutions - [ ] Education policy - [ ] Defense and national security ## Who typically appoints the chair of the U.S. House Financial Services Committee? - [ ] The President of the United States - [ ] The Senate Majority Leader - [ ] The Federal Reserve Chair - [x] The Speaker of the House ## How often are members of the U.S. House Financial Services Committee typically re-elected? - [x] Every two years - [ ] Every four years - [ ] Every six years - [ ] Every eight years ## What legislation is commonly reviewed by the U.S. House Financial Services Committee? - [ ] International trade agreements - [x] Financial regulatory reforms and housing policies - [ ] Immigration laws - [ ] Healthcare regulations ## In addition to banking and insurance, what other industry does the U.S. House Financial Services Committee have authority over? - [ ] Agriculture - [ ] Education - [x] Securities and exchanges - [ ] Automobiles ## Which major U.S. legislative act is often associated with the U.S. House Financial Services Committee? - [ ] Affordable Care Act - [ ] Clean Air Act - [ ] Civil Rights Act - [x] Dodd-Frank Wall Street Reform and Consumer Protection Act ## How do changes in leadership of the U.S. House Financial Services Committee typically occur? - [ ] Appointment by the President - [x] Elections and party leadership decisions within the House of Representatives - [ ] Approval by the Senate - [ ] Decision by the U.S. Supreme Court ## The U.S. House Financial Services Committee has an important role in the oversight of which significant group? - [ ] Department of Defense - [ ] Environmental Protection Agency (EPA) - [x] Financial Stability Oversight Council (FSOC) - [ ] National Aeronautics and Space Administration (NASA) ## Why is the U.S. House Financial Services Committee considered crucial in shaping economic policy? - [ ] Because it enforces criminal laws - [ ] Because it mediates international treaties - [x] Because it monitors and creates legislation affecting financial markets and consumer protection - [ ] Because it manages state-level budgets