Scott Joins Squawk Box to Discuss Banking Committee Agenda
Washington, D.C. – Today, Chairman Tim Scott (R-S.C.) joined CNBC’s Squawk Box to discuss his agenda for the Banking Committee in the 119th Congress. Last week, Chairman Scott released his legislative and oversight priorities to increase financial inclusion and advance opportunity for Americans across the country.
Click here or on the image above to watch Chairman Scott’s interview.
On his agenda for the Banking Committee:
“For me, it's making America's economy work for the working-class people. I grew up in a single-parent household and so, Becky, I’m thinking about those folks today who are working class folks who struggle to make ends meet. It’s like they have too much month for their money. And how do we do that? Number one, I think the regulatory rollback that we're talking about – the reset – we want a responsible level of regulations, not an oppressive level of regulations. You think about Basel III – here’s an example of an oppressive level of capital on the sidelines, the more capital on the sidelines – the harder [it is] to get a mortgage, harder [it is] to start a small business because you need capital. Second area that I’m looking at is capital formation…my theory is that, as a small business owner, it changed my life – it changed my mother's life – and allowed me to live the American Dream…and that requires having a place where you can ask for the money you need...Number three is homeownership. Interest rates spiked because inflation was so high – making homeownership out of reach for so many Americans. How do we do something about that?”
On consolidation in the banking sector:
“Anytime you have Basel III as a proposal, it’s not going to just affect the GSIBs – the largest banks – the banks that have $10 billion or $25 billion – our smaller community banks – they can’t meet the requirements to grow. So, what they’re looking at is consolidating. The more consolidation we see in the smaller banks, the fewer community banks there will be around the country, and that stymies the actual activity that leads to small business growth… think about the fact that in the '80s, early '90s, we had 14,000 banks. We're down to 4,000 and it's consolidating.”
On challenges in the insurance industry:
“The state regulated insurance framework that we have – it’s fantastic, the best in the world…We need to have a have a comprehensive conversation without eliminating the state regulated insurance framework that we currently have…
“We have to figure out how to make sure the insurance companies remain the first line of defense for this nation. It cannot be the taxpayers. But you just made a very important point though, Becky, the bottom line is simply this, in California, they did not allow the insurance companies to increase the rates for the last several years…
“We should engage the insurance industry to understand what it takes to be rate sufficient. That is something that the American people deserve to understand, and we need to have a conversation with our states about making sure that they're following their own rules and laws to make sure that we reduce the threat...”
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