The second-highest-ranking Democrat on the House Financial Services Committee is promising to put more emphasis on investor protection, if she attains the top position on the panel.
Whether Rep. Maxine Waters, D-Calif., ascends to committee chair would depend on her party winning back the House from Republicans this fall. Political prognosticators doubt that outcome, but it doesn't stop Ms. Waters from dreaming.
In a speech on Monday to the public policy conference of the North American Security Administrators Association, Ms. Waters criticized Republicans for what she characterized as brow-beating the Securities and Exchange Commission by demanding that the agency produce detailed regulatory impact reports to justify rules mandated by the Dodd-Frank financial reform law.
Ms. Waters said that Republicans are “using cost-benefit analysis to intimidate the SEC.” She said the GOP, which controls the committee agenda, is “tipping the balance toward capital formation and away from investor protection.”
She said, with a wink, that if certain things happen this fall, she would have a chance to lead the committee. The current ranking member and former chairman, Rep. Barney Frank, D-Mass., is retiring at the end of the year.
“I intend to use [the chairmanship] differently than the position has been used in the past,” Ms. Waters said. “I have respect for the capital markets and all they do – and I'm a fair player. At the same time, it will perhaps be a little bit of a new day in the Congress of the United States, should I have an opportunity to provide leadership.”
The ranking member of the Capital Markets Subcommittee, Ms. Waters told the NASAA audience that she
opposes a recently introduced bill that would authorize one or more self-regulatory organizations for investment-adviser oversight.
She said SRO would be costly and ineffective. She instead favors allowing the SEC to charge user fees for adviser exams. Her position aligned with NASAA's.
“You have a friend in me on the financial services committee,” Ms. Waters told the state regulators.
Ms. Waters is campaigning for the leadership of the House Financial Services Committee, but in a brief meeting with reporters after her NASAA remarks, she declined to outline her agenda.
She asserted, however, that she would be the panel's ranking Democrat should her party fail to take over the House.
“I would be the ranking member, if the Republicans have the majority, yes,” she said.
Her ascension to that role would require winning an election within the House Democratic caucus. Observers speculate that Ms. Waters, who represents south central Los Angeles, could be challenged by Rep. Carolyn Maloney, D-N.Y.
Ms. Waters would be a sharp contrast to Ms. Maloney, who is seen as more sympathetic to Wall Street, given that she represents the Upper East Side of New York City.
In addition, Ms. Waters is the subject of a House Ethics Committee
investigation, which has been ongoing more than two years. That panel is looking into allegations that she used her position to help a bank that suffered substantial losses when federal mortgage lenders went bankrupt. Ms. Waters' husband owned more than $350,000 in the bank's stock when it ran into trouble. Ms. Waters denies the charges.
“Neither my staff nor I engaged in any improper behavior; we did not influence anyone; and we did not gain any benefit,” Ms. Waters said in a 2010 statement. “For the past 34 years I have served in elected office both at the state and national level, and I have made one of my top priorities opening doors and providing access for small, minority and women businesses.”
That focus on Main St., especially in economically challenged areas, as opposed to Wall St. is what she promises to bring to the House Financial Services Committee, if she gets the chance.
