Boccieri expresses concern of possible overregulation on farm credit system
Posted on November 19th, 2009
WASHINGTON, DC – U.S. Congressman John Boccieri (D-Alliance), a member of the House Agriculture Committee who represents more than 4,000 farms in his Northeastern Ohio district, this week expressed concern of possible overregulation on the Farm Credit System at an Agriculture Committee hearing to review discussion draft language that would create a systemic financial risk regulator and oversee financial firms considered ‘too big to fail.’
The draft language contains loan retention provisions affecting the Farm Credit Administration, which oversees a nationwide network of borrower-owned lenders that provide credit and related services to farm country.
Congressman Boccieri issued a statement expressing concern of possible overregulation on the Farm Credit system and the ability for farmers in his district to access affordable sources of credit under the draft language. Boccieri’s statement, as prepared for the record, is as follows:
"I want to thank Chairman Peterson for holding this hearing today. While I believe that the taxpayers on Main Street should never again pay for the greed on Wall Street, we must ensure that any new regulations do not have unintended consequences on the CFTC’s (Commodity Futures Trading Commission) ability to do its job.
"More importantly, we must protect the Farm Credit System from unnecessary regulations that could threaten its ability to provide affordable sources of credit to our farmers. It is clear the legislation is a work in progress but I must express reservations regarding potential unintended effects on the Farm Credit System. As Mr. Strom’s testimony indicates, the Farm Credit System is a unique financial market.
"I am committed to ensuring that the farmers in the 16th District of Ohio, who put food on my family’s table and milk in our refrigerator, have access to the reliable credit they have come to expect from the Farm Credit System. I plan to work with Chairman Peterson and Chairman Barney Frank to ensure the Farm Credit System is protected from unnecessary reforms that have the potential to harm the robust and dependable lending system that our nation’s farmers depend upon.”
The House Financial Services Committee released draft legislation in late October, based on a proposal put forth by the Treasury Department earlier this year. The language creates a Financial Services Oversight Council made up of several agencies – including the Commodity Futures Trading Commission – which would be given powers to identify certain financial players and activities that could pose a systemic risk to the economy. The Federal Reserve would be given broad powers in the draft, with the ability to impose standards despite the objections or expertise of Council member agencies.
The draft language contains loan retention provisions affecting the Farm Credit Administration, which oversees a nationwide network of borrower-owned lenders that provide credit and related services to farm country.
Congressman Boccieri issued a statement expressing concern of possible overregulation on the Farm Credit system and the ability for farmers in his district to access affordable sources of credit under the draft language. Boccieri’s statement, as prepared for the record, is as follows:
"I want to thank Chairman Peterson for holding this hearing today. While I believe that the taxpayers on Main Street should never again pay for the greed on Wall Street, we must ensure that any new regulations do not have unintended consequences on the CFTC’s (Commodity Futures Trading Commission) ability to do its job.
"More importantly, we must protect the Farm Credit System from unnecessary regulations that could threaten its ability to provide affordable sources of credit to our farmers. It is clear the legislation is a work in progress but I must express reservations regarding potential unintended effects on the Farm Credit System. As Mr. Strom’s testimony indicates, the Farm Credit System is a unique financial market.
"I am committed to ensuring that the farmers in the 16th District of Ohio, who put food on my family’s table and milk in our refrigerator, have access to the reliable credit they have come to expect from the Farm Credit System. I plan to work with Chairman Peterson and Chairman Barney Frank to ensure the Farm Credit System is protected from unnecessary reforms that have the potential to harm the robust and dependable lending system that our nation’s farmers depend upon.”
The House Financial Services Committee released draft legislation in late October, based on a proposal put forth by the Treasury Department earlier this year. The language creates a Financial Services Oversight Council made up of several agencies – including the Commodity Futures Trading Commission – which would be given powers to identify certain financial players and activities that could pose a systemic risk to the economy. The Federal Reserve would be given broad powers in the draft, with the ability to impose standards despite the objections or expertise of Council member agencies.
