Lucas Named a Conference Negotiator in Reconciling Financial Reform Bill

Jun 9, 2010

Tamara Hinton (202) 225-0184

WASHINGTON – Today, Ranking Member Frank Lucas issued the following statement on being named to the Conference Committee that will reconcile the financial reform bill. The U.S. House of Representatives passed H.R. 4173 last December. The U.S. Senate passed its own version on May 20.

"This legislation will impact every corner of our economy. It is critical that we strike the proper balance between making necessary reforms to our regulatory framework while not inhibiting job creation and economic growth.  Backroom deals and partisan politics should have no place in this debate and I hope that Chairman Frank remains true to his pledge that conference will be an open and transparent process.
"Of particular concern to me is the Senate-passed derivatives title, which will require manufacturers and other non-financial businesses to unnecessarily tie up billions of dollars of capital that could otherwise be used to create jobs and grow the economy.  The House overwhelmingly rejected, on a bipartisan basis, the Senate approach to regulating these important risk management tools. I hope the House conferees will join me in vigorously fighting to preserve the ability for end users to manage legitimate business risk."
During floor consideration of H.R. 4173, the House overwhelmingly rejected on a bipartisan basis key components of the Senate derivatives title related to the ability of end users to effectively manage their risk. The House approved an amendment offered by Rep. Scott Murphy (D-NY) by a vote of 304-124 (Vote # 956) to add the House Agriculture Committee-passed definition of major swap participant. A majority of the Democratic members of both the full House and the Financial Services Committee supported the Murphy Amendment. The House also rejected an amendment by Chairman Frank to mandate costly and unnecessary capital and margin requirements on end users. The Frank Amendment failed 150-280 (Vote # 957). Additionally, two amendments offered by Rep. Bart Stupak (D-MI) that would have further restricted the ability of end users to cost-effectively manage their risk failed by votes of 98-330 (Vote # 958) and 150-279 (Vote # 959).