New Financial Services Chairman Pledges ‘Title by Title’ Review of Dodd-Frank

Republicans chose Rep. Spencer Bachus, the current ranking member, to lead the U.S. House Financial Services Committee in the next Congress.

Bachus, R-Ala., bested Rep. Ed Royce, R-Calif., in one of the few contested leadership contests. Bachus played a leading role in negotiations over what became the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Royce has co-sponsored bipartisan optional federal charter legislation in each of the past two Congresses. He recently reiterated his support for establishing a federal insurance regulator, saying, “the current regulatory structure is not working.” Royce’s OFC co-sponsor, Rep. Melissa Bean, D-Ill., was a casualty of the Republican takeover of the House of Representatives in the Nov. 2 election (BestWire, Nov. 18, 2010).

Now in his ninth term in Congress, Bachus has served on the financial services panel since 1993 and as ranking Republican since 2007. In a statement, Bachus pledged to end “too big to fail” and work “title by title through the 2,300-page Dodd-Frank act to correct, replace or repeal the job-killing provisions.”

American Insurance Association President and Chief Executive Officer Leigh Ann Pusey welcomed Bachus’ new role. Among other areas of concern, Pusey said she hopes to work with the committee on implementing new regulations and rules close to the legislative intent of Dodd-Frank. “With the enactment of the Dodd-Frank financial reform bill earlier this year and with the committee’s likely focus on the implementation and oversight of these sweeping reforms, AIA will continue to reinforce the distinctions between insurance and other financial services,” she said in a statement.

Outgoing chairman Barney Frank, D-Mass., is expected to remain the panel’s top Democrat.

Other chairmanships announced for the 111th Congress:

— Rep. Fred Upton, R-Mich., will lead the Energy and Commerce Committee, which is expected to reexamine aspects of health care reform;

— Upton named Rep. Joe Pitts, R-Pa., chairman of the health subcommittee;

— Rep. Hal Rogers, R-Ky., chairman of the Appropriations Committee;

— Rep. Paul Ryan, R-Wis., will lead the House Budget Committee.

(By Sean P. Carr, Washington Bureau Manager: sean.carr@ambest.com)