If you thought Wall Street was the party of Republicans, or Democrats … think again.
Apparently, one Texas Republican, Jeb Hensarling, R-Texas, is causing the big banks and Wall Street to take notice as he steps up as chair of the House Financial Services Committee, the Wall Street Journal reports.
So what’s the problem? He’s a business guy right? Wrong.
The WSJ says Hensarling has made it clear, he is pro-free enterprise, not pro-business — or as the WSJ article suggests, he is not into the post-bailout kind of society where mega banks rule.
This oddly puts him in the same company as Democrat from Massachusetts Elizabeth Warren who even partnered with Senate Republicans on a bill to push forward with GSE reform. But here is the WSJ’s take on Hensarling:
"The new chairman of the House financial services committee wants to limit taxpayers' exposure to banking, insurance and mortgage lending by unwinding government control of institutions and programs the private sector depends on, from mortgage giants Fannie Mae and Freddie Mac to flood insurance. Banks and other large financial institutions are particularly concerned because Mr. Hensarling plans to push legislation that could require them to hold significantly more capital and establish new barriers between their federally insured deposits and other activities, including trading and investment banking."
If you believe the mainstream media, politicians can easily be divided into camps – Republican, Democrat … pro-business and anti-business. And red and blue – you get the picture.
But Rep. Hensarling, and for that matter Democrat Elizabeth Warren, R-Mass., are not so easy to classify when it comes to banking and servicing issues.
Instead, these are humans beings who are nuanced in many facets of their belief systems. What should have the industry taking notice to spot future trends in mortgage finance is not where the politicians differ, but where they find common ground.