Tim speaks with Sens. Reed and Dodd at a hearing.

Click Here to Read About Tim's Work on Banking-Related Issues

As a senior member of the Senate Banking Committee, I consider a properly functioning financial services sector a critical part of our economy. I have used my position on the Senate Banking Committee to advocate for the millions of Americans that have invested in their futures, and worked to enable Americans to have more secure retirements. In addition, I have fought to maintain consumer access to affordable credit, and for tough new measures to fight identity theft. I will continue to support public policy that ensures every South Dakotan can invest in a safe and strong market.

In the 111th Congress, I have the privilege of serving as the chairman of the Financial Institutions subcommittee. In South Dakota, over 7 percent of non-farm private sector jobs are generated by the financial services industry. Clearly, a strong banking infrastructure is crucial to our state and to our local communities. The financial services institutions that serve our communities not only provide a secure place for residents to invest their savings, but our communities benefit tremendously as those deposits are reinvested into the local economy through loans to small businesses and entrepreneurs, financing home purchases and kids' educations, and other important investments in our people and our way of life. I am proud to have worked with bankers and other financial service providers throughout our state, as well as the consumers they serve. I am pleased to be in a position to closely monitor this important industry and the regulations that govern it. It is no exaggeration to say that our economy is currently experiencing extraordinary stress and volatility, and it is crucial that we act swiftly and responsibly to put our economy on a solid footing.

The recent economic downturns our nation has suffered started as a crisis in the subprime mortgage market. Unfortunately, damage from unsound lending and borrowing practices has moved beyond the housing sector of our economy, and its ripple effects are being felt by all Americans. The Banking Committee has spent much of the 111th Congress examining the current state of the economy and regulatory structure, as well as exercising oversight over the Troubled Asset Relief Program (TARP) which was created as part of the $700 billion Wall Street bailout. I voted against the bailout when it was considered in September 2008. Thankfully, South Dakota has not seen the highs and lows of the housing market in the same way as other areas of the country. As a general rule, South Dakota's homebuyers exercised strong personal responsibility. They didn't buy too much house, our housing market didn't experience the boom that other parts of the country did, and South Dakota banks didn't sell as many exotic loan products as bankers in other regions sold; our state should be commended for that. However, South Dakotans are now feeling the effects of the economic crisis. For this reason, I supported the American Recovery and Reinvestment Act, commonly known as the economic stimulus package. The economic stimulus package is bold legislation that will create jobs in many sectors of our economy, including education, health care, highway and bridge construction, and renewable energy. While it's hard to measure the exact number of jobs created by any one factor in our economy, it is certainly the case that the economic stimulus package has helped reduce the number of American jobs lost and has helped put people back to work. The projects scheduled for coming months include expansion of services at health centers, work on veterans' medical centers, improvements at airports and highway improvement projects. Thousands of education, law enforcement, and youth jobs will also be created. No one has suggested that turning the economy around was going to happen overnight.

We're still a long ways from being out of the woods. Nonetheless, the stimulus is putting Americans to work and making the kind of upgrades to our infrastructure that will be vital to our future economic growth. I encourage you to visit www.recovery.gov for more information regarding the funding contained in the stimulus package. I will continue fighting for good, effective regulations that balance consumer protection and allow for sustainable economic growth. In coming months, it is important to review the structure of our financial system and develop regulations to create the kind of transparency, accountability, and consumer protection that is now lacking. For the most recent information regarding regulatory reform proposals and other news regarding banking and economic topics, you may be interested in the following links:

Senate Banking Committee | Congressional Oversight Panel | Treasury Department | Federal Reserve | Securities and Exchange Commission | Federal Deposit Insurance Corporation | National Credit Union Administration | Comptroller of the Currency

Sen. Johnson: Consumer Protection | My Pamphlet entitled Financial Matters: A Discussion of Actions South Dakotans Can Take to Achieve their Financial Goals. | The South Dakota Coin |