Member Spotlight

Congressman Ritchie Torres (D-NY)

Congressman Ritchie Torres (D-NY) serves on the Subcommittee on Housing, Community Development and Insurance, Subcommittee on Consumer Protection and Financial Institutions, and the Subcommittee on National Security, International Development and Monetary Policy, and Task Force on Financial Technology. Rep. Torres’ bill, the Housing Temperature Safety Act, H.R. 6528, passed the Committee during this week’s full Committee markup. The bill would establish a pilot at the Department of Housing and Urban Development (HUD) to install and study the efficacy of temperature sensors in federally assisted housing to better ensure tenant health and safety.

Weekend Reads

The New York Times | Fed says stress tests show big banks can withstand a severe recession
The Hill | Powell: ‘Very strong’ US economy can withstand rate hikes
Financial Times | Report questions Robinhood’s depiction of liquidity during ‘meme stock’ frenzy
Business Insider | A Congressional report just gave an inside peek at the confusion and chaos inside Robinhood amid the meme-stock trading frenzy
Reuters | U.S. congressional panel calls for new trading rules after ‘meme-stock’ saga
The Hill | Crypto downturn fuels questions over industry’s future
Bloomberg | Senators ask Powell to alter Fed-pick process to boost diversity

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Committee Hearings

Semiannual Hearing on Monetary Policy and the State of the Economy

The full Committee convened a virtual hearing where Committee members explored the monetary policy report, questioning Fed Reserve Chair Jerome Powell on his plans to tackle inflation while balancing the Fed mandate to promote maximum employment, and discussing how reducing skyrocketing housing costs and reigning in corporate greed are critical to fighting inflation. In her opening statement, Chairwoman Waters noted that, “While it is important for the Fed to fight inflation, I would caution against any approach that ignores the Fed’s maximum employment mandate and results in a recession with millions of people losing their homes and jobs. You should have noted that last week the House passed my bill, H.R. 2543, The Financial Services Racial Equity, Inclusion, and Economic Justice Act, which directs the Federal Reserve to consider the impact of all of its decisions, including setting interest rates on communities of color and underserved communities.”

Chairwoman Waters also commented that, “Democrats in Congress put forth solutions to tackle inflation, but my colleagues across the aisle have consistently voted against every solution.”

Read Chairwoman Waters’ opening statement HERE.
Watch the full Committee hearing HERE.

Upcoming Committee Dates

Tuesday, June 28 at 12:00 PM ET: The Subcommittee on Oversight and Investigations will convene for a virtual hearing entitled, “Where Have All the Houses Gone? Private Equity, Single Family Rentals, and America’s Neighborhoods.”
Wednesday, June 29 at 12:00 PM ET: The full Committee will convene for a virtual hearing entitled, “Boom and Bust: Inequality, Homeownership, and the Long-Term Impacts of the Hot Housing Market.”
Thursday, June 30 at 12:00 PM ET: The Task Force on Financial Technology will convene for a virtual hearing entitled, “Combatting Tech Bro Culture: Understanding Obstacles to Investments in Diverse-Owned Fintechs.”

All hearings are livestreamed on https://democrats-financialservices.house.gov/live/.

Due to the latest information available regarding COVID-19, all hearings this month are fully virtual. Members and witnesses may participate remotely via Cisco WebEx.

Chairwoman’s Corner

Waters and Green Complete Investigation of Meme Stock Market Event; Release Report Revealing the Troubling Business Practices and Inadequate Risk Management Leading up to Trading Frenzy

Congresswoman Maxine Waters (D-CA), Chairwoman of the Committee on Financial Services, and Congressman Al Green (D-TX), Chair of the Subcommittee on Oversight and Investigations, released a Majority staff report entitled, “Game Stopped: How the Meme Stock Market Event Exposed Troubling Business Practices, Inadequate Risk Management, and the Need for Regulatory and Legislative Reform.”

“Last year’s meme stock market frenzy raised important questions about the fairness of our financial markets, the gamification of trading, the treatment of retail investors, and so much more. In response to those events, my Committee held multiple hearings—including the first of them with CEOs from Robinhood, Citadel Securities, and many others—to get to the bottom of the role these companies played in the volatility and disruption in the stock market in January 2021,” Chairwoman Waters said.

“At last October’s full Committee oversight hearing with SEC Chair Gary Gensler, I said that my Committee would also investigate the events that led to the market volatility and recommend policies we should have in place to better protect investors when this scenario arises again. This report details the findings and recommendations that came from our thorough and robust response to the meme stock market event, including the investigation we’ve now completed.

“My Committee’s investigation into the matter showed we need better market regulation to address the troubling business practices that were uncovered during our investigation. Payment for order flow and gamification make it profitable for a new generation of trading apps to push retail investors to make as many trades as possible, making the markets more volatile than ever. The report makes clear that significant legislative and regulatory reforms are needed to modernize the regulatory framework for protecting the market and ensuring that the events on January 28, 2021, do not happen again. Under my leadership, the Financial Services Committee will continue to lead these efforts.”

Read the full press release HERE.
Read the report HERE.

Chairwoman Waters’ Tweet Announcement on the Committee’s Report: