Us Congress House Bill HJR124

Us Congress 2023-2024 Regular Session

• Introduced: 4/5/24
• Refer: 4/5/24
• Report Pass: 4/17/24

Caption

Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Office of the Comptroller of the Currency relating to "Principles for Climate-Related Financial Risk Management for Large Financial Institutions".

Impact

The disapproval articulated in HJR124 may significantly affect how large financial institutions approach risk management in relation to climate change. Should this resolution pass, it would nullify the specified principles, thereby removing or delaying the implementation of regulations that could hold these institutions accountable for climate-related financial risks. In terms of broader state and federal law, HJR124 represents a potential shift in the legislative environment surrounding climate action and financial oversight, appealing to a preference for less regulatory burden on businesses.

Summary

HJR124 is a joint resolution that aims to provide congressional disapproval of a rule proposed by the Office of the Comptroller of the Currency regarding principles for climate-related financial risk management applicable to large financial institutions. The resolution indicates a formal objection by Congress to regulations set forth by federal administrative bodies, particularly those that shape how financial institutions manage risks associated with climate change. With growing concern over climate-related impacts on the financial sector, this resolution reflects a movement to counteract regulatory efforts seen as potentially detrimental to financial institutions’ operations.

Sentiment

Sentiments surrounding HJR124 are deeply polarized. Supporters of the resolution argue that the principles proposed represent unnecessary regulatory overreach that could hinder business operations and economic growth. They stress the importance of allowing financial institutions the flexibility to respond to market conditions without being excessively burdened by regulatory mandates. Conversely, critics assert that disregarding these principles could expose the financial system to significant risks, particularly in relation to climate change, and they argue for the necessity of robust regulations that ensure long-term sustainability and accountability in financial practices.

Contention

The primary contention regarding HJR124 revolves around the balance between regulatory oversight and economic freedom. Advocates for the resolution emphasize the risk of discouraging investment and innovation within large financial institutions due to restrictive regulations. Detractors fear that undermining climate-related regulations could result in systemic risks that may not only affect the financial institutions themselves but also broader economic stability. The debate highlights the complex interplay between environmental accountability and the business interests of financial entities.