U.S. Representative Jeb Hensarling, who leads the House panel that writes laws for the financial industry, said he won’t seek reelection next year, becoming the latest high-profile Republican to announce plans to leave Congress.
“Although service in Congress remains the greatest privilege of my life, I never intended to make it a lifetime commitment, and I have already stayed far longer than I had originally planned,” Hensarling said in a statement Tuesday.
As chairman of the House Financial Services Committee, the 60-year-old Texan leads a panel that oversees regulators including the Federal Reserve and the Securities and Exchange Commission. The committee’s lead role in writing legislation that affects Wall Street has led lobbyists to dub it the ATM because membership all but guarantees a steady stream of campaign contributions from big banks and other financial services firms.
Hensarling voted against the $700 billion bank rescue known as TARP during 2008 financial crisis. And while he’s been a leading critic of the rules imposed on the industry since then, his relationship with Wall Street has been frosty at times because he often embraces populist rhetoric and boast that he’s no friend of big banks.
His decision to step down follows retirement announcements by Republican Senators Jeff Flake of Arizona and Bob Corker of Tennessee. While Corker and Flake are leaving behind searing criticism of President Donald Trump and the party’s direction under him, Hensarling has been an avid supporter of the president’s call to rip up regulations to spur economic growth.
Expiring Term
Hensarling’s term as chairman expires next year, so his role overseeing financial firms was already expected to dim. The competition to replace him atop the panel is expected to ramp up in the coming months, though much remains uncertain ahead of next year’s congressional elections as Democrats make a serious bid to gain a majority in the House.
Should Republicans keep control of the chamber, contenders for the job would include Patrick McHenry of North Carolina, Ed Royce of California and Frank Lucas of Oklahoma. Others who may seek the job include Bill Huizenga of Michigan, and Blaine Luetkemeyer of Missouri.
McHenry, the committee’s vice chairman and a member of House leadership, is best positioned to replace Hensarling, according to some analysts.
“The clout he has earned would likely make him the prohibitive favorite if he decides to throw his hat in the ring," said Charles Gabriel, an analyst at Capital Alpha Partners in Washington. “Though also a staunch conservative, McHenry might be less dogmatic than Hensarling."