Republican ‘bomb-throwers’ once tried to defuse the SVB crisis
His methodical approach makes him a distinct outlier in the Republican Trump era, which is far more rowdy and populist than the Tea Party that came out of the last financial crisis. He said he has responded well so far and plans to dig into how the failure happened in the future.
‘I worked with McHenry during this time,’ said Senate Banker sherrod browna progressive Ohio Democrat said of the recent meltdown.
McHenry’s attempt to convey restraint at this early stage comes at odds with other Republicans eager to defeat President Joe Biden by citing the bank’s rescue as a culture wars concern. This raises questions about how many people will follow his example.
It’s the politician-like role that former startups are playing in many of the issues facing Republicans, from debt limits to diversity, and giving Democrats the toughest economic challenges facing the United States. It shows that there may be at least some top Republicans who can work with you on the issue.
“Everyone has their own opinion,” Sen said. Rand Paul (R-Ky.), when asked about the new position of House Republicans under McHenry’s leadership. A group of left-wing, political snobs.”
McHenry entered the House of Representatives in 2005 at the age of 29, but few people who knew him at the time suggested he would become one of the Republican Party’s leading pragmatists and dealmakers. .
Roll call columnist at the time called him When he fought Democrats in an ethics battle with then-Majority Leader Tom DeLay, who was indicted for criminal conspiracy, he was called “the dog in training to attack the Republican Party”. Participated in the study committee and the major domestic crisis of the year — Hurricane Katrina — in the wake of McHenry Called for funding cuts to public broadcasters To rebuild the school.
“He was very right-wing,” said Cam Fine, former head of the Independent Community Bank of America, which works closely with the Financial Services Commission. “He was pretty pretentious and, frankly, said a lot of things that kind of shook his head … he was a ball of energy.”
People close to McHenry said that over time they realized that McHenry didn’t want a higher position and that he should take his House job more seriously, especially his work on the Financial Services Committee.
Former Speaker of the House Paul Ryan, who advised McHenry to prioritize committee chairmanship over leadership, said McHenry “was a bomber when he first came…and he has matured dramatically.” said.
“At some point he decided that I was going to be bored running around like crazy here. I don’t matter. If I take it seriously, I can make a difference. College I’ve known him since he was a member of the Republican Party.
“After that, he devoted himself to understanding financial services deeply and became a serious conservative rather than an idiot.”
In the years that followed, McHenry followed a dual path through the House Republican ranks, rising through seniority on the Financial Services Committee, becoming a House leader, and eventually becoming one of the Republican voters’ chiefs of staff. I became a person.
He was the Republican leader in financial services in the House of Representatives in 2019 and this year served as Speaker.
In the past few days, before catastrophe hits the banking system, McHenry is determined to hone his trading skills by finding a bipartisan compromise with the top Democrat on the Financial Services Commission. bottom. Maxine Waters (D-Calif.), cryptocurrency legislation, etc. Waters headed the committee before the Democrats lost the House in his 2022 election.
Shortly after taking over as chair, McHenry was urged by Fox News host Tucker Carlson and other conservative pundits to move Waters’ top priorities of diversity and inclusion completely off the Commission’s oversight agenda. I was criticized for not excluding it.
“We have a good relationship,” said Waters. “That’s not to say that a good relationship makes me change my mind about some of his philosophies, or vice versa…but I respect him. He respects me.”
He also distinguished himself as a peacemaker in the difficult Republican House.
McHenry helped Congressmen. Kevin McCarthy (Republican California) blocked the votes he needed to become chairman. The partnership put the bow-tied Republican into the national spotlight.
“He can empathize with the new younger members who throw a lot of bombs,” Ryan said.
His ability to bring together the various factions of the party was held in high esteem by some of McCarthy’s closest allies.
“He’s one of the nicest guys here. Garrett Graves (R-La.) said. “He’s got great instincts and an amazing balance of being both a political geek and a politician that’s rare here. [having] Really good strategic instincts. ”
Another of his big projects this year was to try to get Republicans to resolve the debt limit stalemate. He takes the position that holding the U.S. borrowing authority hostage in exchange for spending cuts could be a market catastrophe, and has been criticized by conservatives like Russell Vogt, former head of Trump’s OMB. “I don’t trust Patrick McHenry,” he said in an email.
So for those who know him, McHenry tried to lure House Republicans to a breather before launching an attack on failed Silicon Valley banks and signature banks over the Biden administration’s bailout of depositors. is not surprising.
This is a challenge as more and more Republicans like Paul see the administration’s move as a mistake.
“This is America,” Sen said. John Kennedy (R-La.) When asked about the response of House Republicans. “Everyone is entitled to have their own opinion.
manager Andy Barr Kentucky, one of McHenry’s commission delegates, said: 1 is that we are adults in a serious situation. ”
“This is not poking both sides of the aisle,” said the rep. Blaine Lütkemeyer of Missouri, another member of McHenry’s Commission leadership team. “This is a time when we feel our country’s future is in jeopardy here.”
“We have to rally around him and bring everyone together.”
Sam Sutton contributed to the report.