"It is possible for Democrats and Republicans to work together on legislation that stands to benefit

American business and our nation's economy."

WASHINGTON, DC-- This evening, the house passed H.R. 2779, sponsored by Congresswoman Marcia L. Fudge (OH-11) and Congressman Steve Stivers (OH-15), which would prevent internal, inter-affiliate swaps from being subject to requirements that were designed to apply only to certain external swaps.  Congresswoman Fudge spoke on the House floor earlier today about the importance of the bipartisan bill that will help American businesses remain competitive.   

"Thank you Mr./Madam Chair.  Today, we debate and will vote on H.R. 2779, a bill that addresses a critical issue facing American businesses.  I want to thank my fellow Ohioan, Steve Stivers, and our staffs for all of their hard work on on this important piece of legislation.

This bill that I co-introduced with my colleague Mr. Stivers, will exempt derivatives trades between two affiliates of the same corporation from clearing, execution, and margin requirements.  This legislation would prevent internal, inter-affiliate swaps from being subject to requirements that were designed to apply only to certain external swaps. 

These internal swaps are used by many American corporations in multiple sectors of our economy. Under the Dodd-Frank financial reform law, there is no distinction between inter-affiliate and external swaps.  Regulation of inter-affiliate trades should reflect the economic reality that internal trades do not increase systemic risk.  As our nation’s economic recovery is getting underway, we need to ensure American businesses remain competitive. 

We all remember the financial crisis and the pain of recovery is evident today.  We cannot and should not return to the wild days on Wall Street.  That is why I voted for the Dodd-Frank law and why I continue to support it.  However, we should allow American businesses, acting in good faith, to effectively manage risk. 

By failing to clarify these important distinctions within Dodd-Frank, we run the risk of stalling job growth and potentially passing costs on to consumers. Together, with our colleagues in the Committee on Financial Services and the Committee on Agriculture, we have strengthened the language of the bill to ensure it cannot be used to evade other financial regulations.

H.R. 2779 was approved by the House Financial Services Committee by a vote of 53-0, and the House Agriculture Committee passed it by unanimous voice vote. 

It is possible for Democrats and Republicans to work together on legislation that stands to benefit American business and our nation's economy.  I urge my colleagues to vote YES on H.R. 2779.

I yield back."

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