WSJ A1, "Texan’s Plans Put Wall Street on Edge," by Patrick O’Connor : Rep. Jeb Hensarling (R-Tex.), 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. ‘A great case can be made that we need greater capital and liquidity standards,’ the conservative 55-year-old Texan said in a recent interview. ‘Certainly, we have to do a better job ring-fencing, fire-walling-whatever metaphor you want to use-between an insured depository institution and a noninsured investment bank.’ In interviews, a half-dozen industry representatives expressed some level of anxiety about Mr. Hensarling’s legislative agenda. …

"Hensarling inherits the chairman’s gavel as many Republicans appear to be growing cooler to big business. Prominent conservatives have called on the GOP to loosen its ties to Wall Street. … Hensarling is leading the charge against [Dodd-Frank], but his attempts to replace it with other restrictions could face stiff resistance in the full House, as well as the Senate controlled by Democrats. He doesn’t yet have a specific plan, but his oft-stated goal is to repeal the orderly liquidation authority contained in Dodd-Frank, which he says perpetuates taxpayer-funded bailouts of big banks. At the same time, he has shied away from more aggressive measures, such as limiting the size of banks or reinstating the Glass-Steagall Act, which walled off commercial and investment banking activity. Mr. Hensarling has expressed interest in reworking the way regulators judge the riskiness of certain debt-which affects how much capital banks must hold-so banks don’t have incentives to hold, say, Greek debt instead of small-business loans. Bank lobbyists and other industry advocates worry that any bill passed by his committee could serve as a template for further reform if another financial scandal spurs Congress to act. …

"Hensarling deputies warned lobbyists for the biggest firms that Republicans would relish a public feud with Wall Street if the financial sector aggressively opposes their efforts, according to lobbyists and lawmakers familiar with those conversations. … Hensarling has a … message for the army of lobbyists who petition his committee: ‘If they thought I was a chairman to promote business interests as opposed to free enterprise, than they have not watched my career closely.’" Free in Google; paste in headline on.wsj.com/X0Rnof

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