Washington, DC – U.S. Representative Judy Biggert (R-IL-13th) will offer several amendments to H.R. 4173, the latest House financial overhaul – or TARP II.  The amendments would alter the bill to protect taxpayers and the economy from future regulatory mismanagement.  Biggert, the Ranking GOP Member on the Oversight and Investigations panel of the House Financial Services Committee, filed four amendments, including a measure to bar the scandal-plagued group, ACORN, from dipping into public housing counseling coffers, and a broader measure that would end the practice by Treasury officials of hand-selecting financial firms for taxpayer-funded bailouts.
 
           “Our amendments would end bailouts, stop the government practice of picking winners and losers, and restore market discipline,” said Biggert.  “Creating vast new government agencies, permanently codifying the practice of bailouts, and doubling-down on government intrusion in the financial sector will not create the certainty and accountability our markets need to recover, restore credit, and -- most importantly -- create jobs.  We need smarter, stronger financial regulations that will safeguard against future financial meltdowns without placing the government in a position to contribute to the next one.”
 
           Biggert’s amendments will be considered by the House Rules Committee, which on Wednesday is expected to determine which amendments will be allowed a vote on the House floor.  Biggert’s first amendment is based on H.R. 3828, a bill she introduced in October, which would suspend U.S. Department of Housing and Urban Development’s (HUD) certification and funding of housing counseling activities under ACORN and its affiliates pending a comprehensive audit by the HUD Inspector General.
 
           “It’s abundantly clear that ACORN should not be trusted to receive public funds as a federally-certified entity,” said Biggert, a long-time champion of federal housing counseling programs.  “Given the group’s clear links to illegal and inappropriate activities, how can we knowingly give them federal certification to divert precious resources from legitimate housing counselors working overtime to help struggling homeowners?”
 
           Biggert also is a lead cosponsor and author of several provisions in a GOP substitute offered by Financial Services Committee Ranking Member Spencer Bachus (R-Al-6).  The substitute would replace provisions in H.R. 4173 that permanently codify federal authority to bail out ‘too-big-to-fail’ financial institutions.  Instead, the substitute allows for a responsible and orderly resolution of insolvent financial firms through a new chapter in the bankruptcy code.  It also strengthens federal consumer protection efforts, requires greater transparency in the over-the-counter derivatives market, establishes a federal office to coordinate insurance matters, and expands efforts to combat financial fraud.
 
           “Our alterative sends a clear message that from now on, Wall Street, not taxpayers, will be responsible for irresponsible business practices,” said Biggert.  “It would strengthen regulations, end bailouts, and instill much-needed transparency and accountability in the financial markets.”
 
           Finally, Biggert offered two amendments on derivatives designed to ensure that U.S. businesses, including those in Chicago, would remain competitive with international rivals in the UK and Germany.  The first would allow designated clearing organizations to retain ‘self-certification’ authority under the Commodity Exchange Act (CEA).  This authority allows them to quickly move innovative products to market and implement rule changes in response to evolving markets.  In every case, the Commodity Futures Trading Commission (CFTC) would retain ultimate authority to halt any self-certified product or rule.  The second amendment would preserve competition, flexibility, and innovation within U.S. markets by maintaining the current discretion of clearing organizations to organize and operate in accordance with the CEA’s Core Principles, rather than a “one-size-fits-all” approach dictated by the CFTC.

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