Yesterday, New Hampshire Congressman Frank Guinta proudly announced that he has been named a member of the House Committee on Financial Services, which has jurisdiction over issues pertaining to the economy, the banking system, housing, insurance, and securities and exchange.
Let’s hope Guinta has learned a little something about the banking system since his embarrassing display of ineptitude last year when he botched the facts concerning financial regulation in a hearing with Elizabeth Warren.
Rep. Frank Guinta (R-N.H.) mistakenly thought the CFPB was unique among financial regulators in having a leader with a five-year term and in not being subject to annual Congressional appropriations — neither of which is true.
Guinta then suggested that the agencies Warren compared to the CFPB actually had more oversight from Congress through annual approriations.
“No, Congressman, I’m sorry,” Warren answered. “There is no banking regulator who is subject to the political process or to appropriations.” Regulators such as the FDIC and others take fees from financial institutions for their budgets.