Dems Win House, Republicans Gain in Senate; Waters is Likely Financial Services Chair

Democrats stormed into control of the House Tuesday night, but their efforts to take over the Senate failed.

And in a closely-watched gubernatorial contest, in Ohio, Democrat Richard Cordray, the former director of the CFPB lost to Republican Mike DeWine, the state’s Attorney General and a former senator.

The Democratic takeover of the House likely means that Rep. Maxine Waters (D-Calif.) will become chair of the House Financial Services Committee. Waters is an outspoken critic of Mick Mulvaney, the acting Director of the CFPB and has called for breaking up the big banks.

Republicans also will have a new ranking member on the Financial Services Committee. Chairman Jeb Hensarling (R-Tx.) is retiring at the end of the year. Rep. Patrick McHenry (R-N.C.) is the vice chairman of the panel.

CUNA has said it would spend some $7 million in campaign contributions and independent expenditures in support of House and Senate candidates they believe were friendly to credit unions. NAFCU operates a much smaller political action committee.

“Credit unions invested a record $7 million into this election to help continue the positive momentum we’ve seen for credit union priorities in Congress,” CUNA President/CEO Jim Nussle said. “We’re pleased that we’ll have many friendly faces in the next Congress, and we’ll be working hard from now until then to connect with new members and engage with returning members to advance credit union priorities.

Here are the results in several House and Senate races of importance to credit unions:

• Sen. Sherrod Brown (D-Ohio), the ranking Democrat on the Senate Banking Committee was elected to a third term, defeating Republican Rep. Jim Renacci.
• Sen. Elizabeth Warren (D-Mass.), an advocate of tighter regulation of financial institutions, won a second term. She defeated Republican Geoff Diehl.
• Sen. Joe Donnelly (D-In.) was defeated by Republican Mike Braun. Donnelly was an early supporter of the Dodd-Frank overhaul crafted by Senate Banking Chairman Mike Crapo (R-Id.). CUNA spent $525,000 in independent expenditures for digital advertising and direct mail on Donnelly’s behalf.
• Sen. Claire McCaskill (D-Mo.), another supporter of the Crapo bill, was defeated by Republican State Auditor Josh Hawley.
• Sen. Joe Manchin (D-W.V.), who also supported the Crapo measure, defeated Republican state Attorney General Patrick Morrisey.
• In Montana, Republican state Auditor Matt Rosendale held a narrow lead over Democratic Sen. Jon Tester. CUNA spent $250,000 on digital and radio ads for Tester.
• In a special election in Mississippi, Sen. Cindy Hyde-Smith, a Republican, was forced into a Nov. 27 runoff with Democrat Mike Espy. CUNA spent $200,000 in independent expenditures in the race.
• Rep. Bill Posey (R-Fla.) handily defeated Democrat Sanjay Patel. Posey has taken the lead on efforts to delay the NCUA’s Risk-Based Capital rule for two years, rather than the one year recently approved by the agency’s board.
• Rep. Peter Roskam (D-Ill.) lost his reelection bid to Democrat Sean Casten. Roskam currently is the chairman of the House Ways and Means Committee’s tax policy subcommittee, a key position for credit unions that might face a challenge to their federal tax exemption.
• Rep. Randy Hultgren (R-Ill.), an outspoken critic of Dodd-Frank, was defeated by Democrat Lauren Underwood.
• Rep. Steve Chabot (R-Ohio) won another term in the House, defeating Democrat Aftab Pureval. CUNA spent $200,000 on advertising in support of Chabot.
• House Rules Committee Chairman Pete Sessions (R-Tx.), was defeated by Democratic civil right attorney Collin Allred. CUNA spent $200,000 in independent expenditures in support of the Republican incumbent.
• Republican Rep. Bruce Poliquin of Maine, a longtime critic of Cordray’s reign at the CFPB, held a narrow lead over Democrat Jared Golden.
• Rep. Tom O’Halleran (D-Ariz.) led Democrat Wendy Golden, in a race that saw CUNA spend $76,000 in independent expenditures for direct mail ads for O’Halleran.