Chairman Hensarling Announces Hearings on Proxy Services and Other Issues (with Lofchie Comment)

The House Financial Services Committee Chairman Jeb Hensarling (R-TX) announced the committee's hearing schedule for the first half of June. Witnesses for each hearing will be announced at later dates.

• June 5 at 10 a.m. – The Capital Markets and Government Sponsored Enterprises Subcommittee will hold a hearing to examine the market power and impact of proxy advisory firms.
• June 12 at 10 a.m. – The Financial Services Committee will hold a hearing on alternative housing finance models.
• June 12 at 2 p.m. – The Capital Markets and Government Sponsored Enterprises Subcommittee will hold a hearing to examine proposals to support capital formation.
• June 13 at 10 a.m. – The Monetary Policy and Trade Subcommittee will meet for a hearing to discuss reforms to the Export-Import Bank.
• June 13 at 1 p.m. – The Housing and Insurance Subcommittee will hold a hearing on international insurance issues.

Lofchie Comment: The interesting hearing will be the one on proxy advisory firms. This hearing has significance both for corporate governance issues and for fiduciaries who follow the advice of such services. There have been two recent news stories focusing attention on these services: SEC Commissioner Gallagher Delivers Remarks on Proxy Advisory Services (with Lofchie Comment); SEC Charges ISS in Breach of Clients' Confidential Proxy Voting Information (with Lofchie Comment).

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