The House Financial Services Committee held a mark-up today on the GOP’s budget reconciliation proposals, which include repealing Dodd-Frank’s orderly liquidation authority (see Client Reports in the RESOLVE series) and subjecting the CFPB to the appropriations process. As FedFin expected, the parties sparred throughout the marathon mark-up, with Republican Members defeating a wide range of amendments offered by their counterparts across the aisle. Interestingly, Democratic Members did not offer any amendments to oppose the budget’s elimination of Treasury’s HAMP, which is the Administration’s primary foreclosure-prevention program. In advance of a FinServ hearing tomorrow to examine the budget of the Office of Financial Research, Rep. Canseco (R-TX) introduced an amendment to eliminate the agency, which was approved by a voice vote. All of the changes in the FinServ measure stand a strong chance of passage on the House floor, but scant prospects in the near term in the Senate. However, as the 2013 sequestration deadline nears, FedFin expects Congress to turn in earnest to new deficit-reducing measures. After the November election, some of the ideas Democrats proposed at this mark-up to counter the GOP – especially with regard to some new revenue sources from the GSEs and new big-bank premiums to fund OLA – could emerge as viable proposals. This client report assesses today’s debate and voting.
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