“The SEC, CFTC, Treasury, Federal Reserve and entire Senate are on the same page. Now, it’s time for the House to enshrine this policy in law. Short of that, we cannot ensure that firms beholden to Communist China will let U.S. regulators examine their books, which means we can’t protect American retirement and college savings from being exploited.”

 WASHINGTON – President Trump’s Working Group on Financial Markets, tasked with examining risks to investors posed by the Chinese companies listed on U.S. exchanges, today issued recommendations inspired by the Holding Foreign Companies Accountable Act. Sen. John Kennedy (R-La.) issued the following statement in response to the working group’s decision:

“We’re thankful the president’s working group is committed to holding fraudulent Chinese companies accountable. The SEC, CFTC, Treasury, Federal Reserve and entire Senate are on the same page. Now, it’s time for the House to enshrine this policy in law. Short of that, we cannot ensure that firms beholden to Communist China will let U.S. regulators examine their books, which means we can’t protect American retirement and college savings from being exploited,” said Kennedy.

Background:

The Holding Foreign Companies Accountable Act passed the Senate unanimously this May.

Kennedy introduced the legislation to protect American investors and their retirement savings from foreign companies that have been operating on U.S. stock exchanges while flouting SEC oversight.

On June 4, the Trump Administration issued a presidential memorandum on protecting American investors from the risks posed by Chinese companies that list on U.S. exchanges. 

“We must take firm, orderly action to end the Chinese practice of flouting American transparency requirements without negatively affecting American investors and financial markets. We must ensure that laws providing protections for investors in American financial markets are fully enforced for companies listed on United States stock exchanges,” said the memorandum.

The Holding Foreign Companies Accountable Act prohibits securities of a company from being listed on any of the U.S. securities exchanges if the company has failed to comply with the Public Company Accounting Oversight Board’s (PCAOB) audits for three years in a row.

The bill would also require public companies to disclose whether they are owned or controlled by a foreign government, including China’s communist government. 

Many Americans invest in U.S. stock exchanges as part of their retirement savings, and dishonest companies operating on the exchanges put Americans at risk. This legislation protects the interest of American investors by ensuring that foreign companies traded in America are subject to the same independent audit requirements that apply to American companies.

Congress established the PCAOB to inspect audits of public companies, ensuring the information companies provide to the public is accurate, independent and trustworthy.

Currently, China’s communist government refuses to allow the PCAOB to inspect audits of companies registered in China and Hong Kong. Such companies represent a keen risk to American investors as nearly 11 percent of all securities class action lawsuits in 2011 were brought against Chinese-owned companies accused of misrepresenting themselves in financial documents.

According to the SEC, 224 U.S.-listed companies are located in countries where there are obstacles to PCAOB inspections. These companies have a combined market capitalization of more than $1.8 trillion.

In the last 10 years, the number of Chinese companies listed on U.S. stock exchanges has increased significantly, as those firms take advantage of the capital available in America.

“Louisiana shrimpers and their families produce the best seafood in the world. . . . The USDA’s decision is a win-win for Louisiana shrimpers and Americans who need a little help to persevere through hard times.”

WASHINGTON – Sen. John Kennedy (R-La.) today welcomed the U.S. Department of Agriculture’s (USDA) decision to purchase $30 million of shrimp to help alleviate food insecurity in the midst of the coronavirus pandemic. The USDA made the purchase under the Agriculture Act of 1935, which provides for national food assistance during emergencies.

“Louisiana shrimpers and their families produce the best seafood in the world. Season after season, Louisiana shrimpers have faithfully put food on the table for millions of Americans, and I admire their hard work and dedication during this crisis. The USDA’s decision is a win-win for Louisiana shrimpers and Americans who need a little help to persevere through hard times,” said Kennedy.

“Now is the time we should be doing more to ensure the survival of rural hospitals, not expediting their demise. We ask you to please reconsider this action and work with Congress to ensure the long-term vitality of our rural hospitals.”

WASHINGTON – Sen. John Kennedy (R-La.) today asked Centers for Medicare and Medicaid Services Administrator Seema Verma to reconsider a regulatory action that will force rural providers to repay up to 80 percent of their forgiven Paycheck Protection Program (PPP) loans through reductions in future Medicare and Medicaid reimbursements.

“This action is unacceptable. Not only will this exacerbate financial burdens for rural hospitals already operating on razor thin margins, but it will likely prove to be a catalyst in expediting the rural hospital closure crisis at a moment when many of these rural areas are current COVID-19 hotspots in need of the most assistance,” wrote Kennedy.

“The PPP was designed to help struggling businesses survive the economic impact brought on by COVID-19 and served as a lifeline for the rural hospitals,” continued Kennedy. “Louisiana, for example, is home to 57 rural hospitals—nine of which are deemed vulnerable—and 44 percent are currently operating at a loss.”

The letter also notes that President Trump yesterday issued an executive order to provide assistance to rural health providers.

“Now is the time we should be doing more to ensure the survival of rural hospitals, not expediting their demise. We ask you to please reconsider this action and work with Congress to ensure the long-term vitality of our rural hospitals,” Kennedy concluded.

Kennedy’s letter is available here.

“During hurricane season, Louisiana must take appropriate steps to protect residents from flood damage. This grant will help safeguard property for communities in Jefferson Parish.”

 MADISONVILLE, La. – Sen. John Kennedy (R-La.), a member of the Senate Appropriations Committee, today announced a $11,141,987 FEMA grant to support the elevation of 63 flood-prone structures in Jefferson Parish.

“During hurricane season, Louisiana must take appropriate steps to protect residents from flood damage. This grant will help safeguard property for communities in Jefferson Parish,” said Kennedy.

This funding is authorized by the National Flood Insurance Act. In compliance with state and local building codes, structures will be elevated two feet above the base flood elevation or higher, depending on sea level rise predictions.