in the search bar you want to talk john kasich in the monitor breakfast. we will leave to remark some house financial services committee chair jeb hensarling, expected to talk but it's legislation that would replace the 2010 dodd-frank financial law. this is at the community bankers association summit in washington, d.c.. his remarks live now here on c-span2. >> i'm going to value more than making community banking great again. [applause] >> and one size fits all. anyway, thank you for doing what you do. thank you for rolling up your sleeves and helping build america's communities. thank you for helping build and capitalize our small businesses. thank you for allowing people to achieve their american dream, regardless of what others might think. i believe community banking is a noble profession, and i thank you for entering it. [applause] >> just a few months ago we lived under a different administration. i believe an administration that looked upon banking with suspicion or worse, he believed that government fiat was far superior to market discipline. times have changed. now we live under an administration understands that onerous washington top-down regulations have choked our economy and the administration is working to make america open for business and commerce yet again. just a few months ago we live in an administration that seemed almost embarrassed by the founders of this nation, by the industrialist, the financiers and laborers who had built prosperity in the past. today we have an administration that is committed to making america great again and making community banking great again. [applause] >> so it's my intention this morning to focus my remarks obviously on banking and capital markets. economic growth and creating accountability for both wall street and washington. but first i want to maybe linger on a bit on a bigger picture. now, none of us were alike in the 19th century, and so we cannot truly appreciate the world's amazement at america's first few decades of the greatness. but a flood of visitors saw american life as bound up with its commerce and industry and the character of the people in a triangle with trait and artwork. in 1835 alexis de tocqueville saw the quote commercial greatness of the u.s. and the daring of mariners who spent almost two years circling the globe to china and backing clipper ships just to quote cell pic down to tea for one penny less than english merchant. the americans won't put something heroic into the way of trading. in 1888 that british visitor wrote the best executive ability in the country is found not in government but among the large merchant, manufactures, bankers and railroad men, less great land speculators and directors of trading or caring companies. another visitor in 1892 observed how common it was for americans to go to bed a millionaire, wake up penniless, and begin a begin to erode that quote everything was all that has to conclude the moral worth and personal active creative energy explain the american success. testimonies to america's greatest in the 19th and early 20th century could be multiplied. most saw the countries success resulting from modest size and limits on government interference with personal initiative. yet even in 1840s even back then the same de tocqueville saw great hair was of an american commerce also saw something very worse on the horizon, and impending desire for collective security at the expense of individual opportunity. in othe.in other words, the thra widespread mild degrading government oppression led not by tyrants but by what he termed schoolmasters. a new kind of despotism he went on to write with quote cover the whole of social life with the network of peddie, complicated rules that about minute in uniform. through which even then at the greatest originality and the most vigorous temperament cannot force their head above the crowd. crowd. it does not destroy anything but prevent much being born. sound kind of familiar? it tenders, restraints, stifles so much that in the end each nation is no more than a flock, the timid and hard-working animals with the government as its shepherd. in other words, de tocqueville thought one day a soft style despotism would smother competitiveness and imagination. those qualities that made america great ones and can make it great yet again. de tocqueville i believe was prophetic. every economic downturn since the 1907 financial panic has been followed by new federal agencies issuing towards the regulations covering more sectors of society. from the new freedom to the new deal to the great society to progressive of the last administration, we've gone far beyond a balance between security and opportunity. and so we must ask ourselves how many bureaucratic dictates are so complex as to become unintelligible? , schoolmaster expertise miss guide our economy? how much of the rule of law has instead given way to the arbitrary discretionary rule of bureaucratic rulers? turning toward financial institutions, the financial crisis of 2080 birth to the dodd frank act. dodd-frank is quite simply a colossal blunder, i feel he can knee-jerk government response to a problem government largely created. [applause] >> president trump's wants to quote-unquote to a number on dodd-frank. mr. president, if you're listening, house republicans stand ready to do just that. [applause] we will replace onerous government fiat with market discipline. we will replace bailouts with bankruptcy for large, complex financial institutions. we will replace mindnumbing complexity with simplicity, and most importantly, we're going to throw you a deregulatory life preserver to save our community banks. [applause] >> we will hold both washington and wall street accountable, and by doing so we will unleash capital formation from sea to shining sea so the economy then can move yet again for the betterment of all of our citizens. in a phrase, though the economic opportunity for all, and bank bailouts for none. the case for dodd-frank was based on the false narrative that deregulation and wall street bankers agreed single-handedly caused the financial meltdown. that case has long been exploited. regulation actually increased by almost 20% in the years leading up to the crisis but i suspect i don't need to tell you that. banking was and remains one of the most heavily regulated industries in america. we know that the government itself through the agencies of fannie mae and freddie mac demanded the purchase of trillions of dollars of worthless or risky mortgages. in fact, almost 70% of all troubled mortgages that led to the crisis were backstopped by the federal government. the left decided to roll the dice on so-called affordable housing, and the nation lost big. if america's regulatory regime brought the global economy to its knees a few short years ago, why would we ever want to double down on the same failed regulatory regime? asking her to baker's unit all two of the the damage dodd-frank has done to consumers and businesses. just in case, let me remind you of a few. 75% of banks used to offer free checking before dodd-frank became law. by 2016 only 38% did so. minimum balance requirements to qualify for free checking have almost quadrupled an average monthly fees have more than tripled. the self explained why the number of households that are either under banked or un- banked its up by more than 39 cents the passage of the dodd-frank law. data show there are 50 million fewer credit cards available to date and a in 2008 and the remaining options cost more. this hurts both small businesses and struggling families. the federal reserve reports that once dodd-frank qualified mortgage role fully kicks in, an estimated one-third of black and hispanic borrowers will be denied mortgages due to its rigid debt to income ratio, yet many on the left remain silent. university of maryland researchers in a september 2016 report found found that while quote dodd-frank aimed at reducing mortgage fees and abuses against vulnerable borrowers, it's leading regulation actually triggered a substantial redistribution of credit from the middle-class households to wealthy househol households. as result of dodd-frank regulations, they said middle-class held folks not only did not obtain cheaper mortgages but were cut out of the mortgage market altogether. but again, i suspect you already know this. it is no surprise that many of you have told me that qme doesn't stand for qualified mortgages at your bank. stands for quitting mortgages. regrettably that's what many of you have had to do. that's just wrong. and you know what else is wrong? anytime you have to lay off a loan officer to make room for a compliance officer. that's wrong. do you agree? [applause] >> of all the regulatory burdens that are preventing healthy economy in america today, dodd-frank is the worst. besides the obvious onto economic growth and consumer welfare, dodd-frank represents an even more dangerous prospect, namely the prospect of politicized lindy. in other words, washington elite allocating our capital to fill their agendas. devoid of any reasonable semblance of checks and balances or due process. witness the advent of regulations literally and figure delete, regulators, literally and figuratively in your board rooms. affordable housing mandates, lengthening the mortgage requirements and of the shameful and discredited operation choke point. the programs which washington elites with the financial squeeze on legal businesses and entire industries that the previous administration decided it just didn't like. let us also recall that the second worst financial panic in history occurred due to regular saying there was virtually no risk in mortgage-backed securities and sovereign debt. think fannie, freddie and greek monster regulator political preference for government debt in support of housing market helped bring the global economy to its knees. next, why is it that a small business loan in athens texas in the fifth district of texas has a 100% risk waiting risk waiting under the basel accords and the world bank can advertise a zero risk rating for their green bonds? what political preference does that tell you ask and it is impossible to bring the threat of politicized lindy without bringing up that dodd-frank created rogue agency known as the consumer financial protection bureau. have any of heard of it? the cfpb is arguably the most powerful least accountable agency in u.s. history, and put into a three-judge panel of the d.c. circuit court of appeals, its structure is unconstitutional. it's a director virtually defines his own powers of aiding in the constitution notion of checks and balances to keegan launched investigations without cause, shake it down, levy fines, all without due process. in the current bureau director, virtually brags that he regulates through enforcement to call announcing his view of the law after the fact. this unfairly deprives all market participants of adequate notice so that they may act in good faith to conform their actions to the requirements of the law. american due process and the rule of law cannot and must not depend upon which side of the bed richard cordray wakes up one. that's not right. and as a founding father james madison wrote in federalist 47 quote, the accumulation of all powers, legislative, executive and judiciary, in the same hands may justly be pronounced the very definition of tyranny. ladies and gentlemen, cfpb is a tyranny and it must go. [applause] >> otherwise i've no strong opinions on the matter. [laughing] >> true consumer protection is only to be had in competitive, transparent and innovative markets vigorously policed for fraud and deception. that's what the financial choice act on house republicans is all about. and let me tell you, i could not be more elated and i could not be more grateful that i cba is back in the financial choice. thank you. [applause] >> the financial choice act release community financial institutions like you're some regulations that create more burden than benefit in exchange for meeting high yet simple capital requirements. our reform plan allows banks to opt out of dodd-frank strangling regulator and not into a regime with high levels of loss absorbing private capital. banks maintain a leverage ratio of these 10% may elect to be functionally exempt from the post dodd-frank supervisor regime, the basel iii capital liquidity standards, and most of the other regulatory burdens of dodd-frank. any bank that used maintain a 10% leverage ratio in order to qualify for regulatory relief will be significantly better capitalized than under dodd-frank, significantly to a survey of capital levels of 115 large global banks found that during the last financial crisis, no bank that had at least a 10% equity to risk-weighted assets at the end of 2007 failed or required substantial government assistance. under our approach banks will need a far more stringent 10% leverage ratio. now, it's important important to know the financial choice act does not force any bank to regulate capital. rather, it allows you the opportunity to opt in to a different regime, one that replaces dodd-frank suffocating regulatory complexity with market discipline. in which equity investors stand in the place of taxpayers the next time a so-called too big to fail firm collapses. the banks will opt into the choice regime only if it makes them more competitive, let's them serve their customers better at a lower cost. which means a choice act provides no federal rule establishing-credential standards of the time the found in dodd-frank will apply to qualifying rankin banking organizations, including the living will requirement which recent gao study found has been administered without transparency and without due process. in short i will capitalize qualifying bank will be empowered to remove government bureaucrats from its boardroom, and lind and invest freely. the key part of our reform plan is to end too big to fail once and for all. [applause] >> the way to avoid bailouts is bankruptcy court for failing companies so the financial choice act creates a new subchapter of the bankruptcy code tailored to large complex financial institutions. dodd-frank's liquidation authority approach to winding down a bankrupt institution gives a handful of bureaucrats vast amounts of arbitrary discretion and lacks the certainty of law and precedent it must be repealed. when it comes to regulatory regime our goal should not be downsized or supersize banks, but to right size them under competitive market discipline. instead of government bureaucrats overseeing banks that plan for the failures, we would much rather see banks plan for their expansion and to plan for their customers success, and grow the economy for all. we must not only in taxpayer-funded bailouts bu. we must also end washington's ability to designate any institution at systemically important. sifi grants as a reserve near to factor management authority over such institutions thus exposing huge swaths of the economy to the federal governments direction and gives them a competitive advantage. the financial choice act repeals washington's authority to designate sifis going forward and retroactively repeals previous sifi designations. whilst demonstrable to washington itself like the basis for the basis of the 2011, the financial choice financial choice act recognizes that illegal activity by that actors and financial institutions and tremendously harm the financial well-being of consumers and society. therefore our plan imposes the toughest penalties in history for financial fraud, for self-dealing, and deception. we will hold both companies and individuals accountable for wrongdoing, but we will also make sure that due process is always honored. no one should be shut down by the government. next, our reform plan repeals the mr. scott and unneeded volcker rule. the volcker rule was unnecessary and it capital markets less liquid which was even confirmed by a recent federal reserve report. in addition falconers made our markets more fragile and undermined financial stability to the financial choice act include provisions to unleash opportunity for economic growth including numerous provisions that will help foster capital formation and provide main street job creators with regulatory relief so more americans can go back to work and have good careers and get their family a better life. so i have gone through just a few of the specifics, but let me borrow the financial choice act down to its essentials. we will never again be allowed a wall street bank, period, paragraph to the era of big bank bailouts is over. [applause] for anyone who engages in fraud and deception, tough penalties await, but again, you're due process rights will be restored. and if you maintain a strong balance sheet with lots of loss absorbing private capital, we will release you from the shackles of federal micromanagement. we will for you to be the best bank as you can be, for you to help rebuild our economy, and for you to be successful. and we will honor your success, not vilify it, and we will once again let freedom ring from sea to shining sea. i begin my remarks by recalling that once there is universal agreement on the greatness of this nation. can we make america great again? we should have no doubt. we have a president and we have a congress working together we can bring about relief, regulatory relief, bring the regulatory state to hill and placed at the constitutional principles of self-government for the common good. in thing the bureaucratic that is known as dodd-frank is a great start -- ending -- it is time to create hope and opportunity for investors, consumers and entrepreneurs. to date as soon as i leave this speech am going back to capitol hill were at 10 a.m. we began the formal markup of h.r. ten, the financial choice act. and with a rousing support, i look forward to going to the oval office today and watching president trump's signed into law, and it will not be a moment too soon. thank you so very much for what you do for banking in america, thank you for having me here today. [applause] thank you. thank you. >> wow. he gets that marked up today, this week, we are on our way. thank you. i'm half of all the community bankers in the room, thank you for your efforts -- [inaudible] >> sunday on q&a, defense news naval warfare corresponded chris cavett on the navies bribery scandal involving malaysian defense contractor. >> completely embarrassing guy states navy that shocked the culture of the navy that people were corrupted to provide most with information about ship movements. but other things as well. in exchange for not much money but fairly lavish lifestyles. >> sunday night at a eastern on c-span's q&a. >> c-span, where history unfolds daily. in 1979, c-span was created as a public service by america's cable-television companies and is brought to you today by your cable or satellite provider. >> this past week the supreme court heard oral argument i in e case that questions the governments ability to strip naturalized citizens of their citizenship for lying during the naturalization process in the case involves an ethnic serbian woman who was deported aptos discovered she lied about her husband military service while living in boston. she argues the false statement was immaterial to her receiving citizenship but the lower courts disagreed by declaring that any live, with a significant or not was enough to justify the government actions. this is one hour. >> we will their argument next this morning in case 16309, maslenjak president states. >> thank you, mr. chair justice and may it please the court. section 1425 of the federal criminal code authorizes the government to strip a naturalized american of citizenship if it was procured contrary to law. our position in this case is simple. the words procured contrary to law require a causal link between the procurement of citizenship and underlying violation of law. at the government urging, the district court read such a causal link out of the statute, instructing the jury that it could convict if petitioner obtained united states citizenship and violated at least one law governing naturalization. the instructions did not require the government to prove that the underlying violation of law had any effect whatsoever on the naturalization decision. even assuming i thought your argument, that's a very broad statement, any effect. how about a natural tendency to affect? because you can never predict

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