House bill 'recalibration' of banking law

Violet Powell
March 10, 2018

The bipartisan bill, authored by Senate Banking Committee chairman Mike Crapo, has the support of 13 moderate Democrats, which given broad Republican backing should be enough to assure passage in the 100-seat chamber. It would also amend the Bank Holding Company Act of 1956 to exempt banks with assets valued at less than $10 billion from the Volcker Rule, and it would also amend the U.S. Housing Act of 1937 to reduce inspection requirements and environmental-review requirements for certain smaller, rural public-housing agencies.

Warren, long a consumer advocate, warned customer protections would be eroded as the Senate moved closer to passing the first rewrite of the 2010 Dodd-Frank financial reform law.

Tester, however, said Senate Democrats would abandon the bill if House lawmakers add more radical de-regulatory language.

"I am not going to let this legislative history be papered with misconceptions of this bill", Heitkamp said.

On Tuesday, Sen. Elizabeth Warren (D-Mass.)-one of the original champions of Dodd-Frank-criticized Democrats who voted to advance the current bill.

Other critics like Phil Angelides, former chairman of the Financial Crisis Inquiry Commission, argue the bill "would weaken the financial system safeguards and taxpayer and consumer protections put in place in the wake of the financial crisis".

The Economic Growth, Regulatory Relief and Consumer Protection Act (S.2155) ensures that small lenders can provide mortgage and other credit to hardworking Americans, helping them and their families grow and start businesses.

Backers of the plan argue that smaller banks shouldn't have to face the same set of strict rules as behemoth Wall Street banks that could endanger the entire financial system if they go under. That is naïve and also ignores the fact that virtually zero aspects of Dodd-Frank that affect community banks were implemented quickly.

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She then launched the first known legal challenge against racial segregation brought forth by a black woman in Canada . Stuck in New Glasgow overnight, she chose to watch a movie at the Roseland Theatre.

Roughly all 51 Republican senators are expected to back Crapo's bill, and Republican leadership is counting on at least 12 Democrats to vote for the measure.

May said the Dodd-Frank Act is too restrictive and hurts small, community banks even though they didn't play much of a role in the housing crisis almost 10 years ago.

Other co-sponsors come from purple states, like Tim Kaine and Mark Warner of Virginia, Michael Bennet of Colorado, and Gary Peters of MI. "Now all of a sudden I can look tactically at acquisitions of banks for $10 to $50 billion".

The rollback measure also has the support of Sen. "But I believe a effect of it has been to accelerate consolidation of banks".

The Department of the Treasury released a 57-page proposal that did not fully repeal Dodd Frank, keeping a crucial provision that allows the Federal Deposit Insurance Corporation (FDIC) to take control of an insolvent bank and restructure it using federal money.

"The bill before us this week will continue to unwind the damage caused by an administration and Democrat-run Congress that kept its foot firmly on the brake of the American economy", McConnell said.

"We feel very good about getting through this process", Warner told reporters. That means more than two dozen banks would be shielded from some of the Federal Reserve's oversight.

The bill would also change how the "supplementary leverage ratio" is calculated, a key capital requirement for the biggest banks that was created to ensure those financial institutions could handle a financial disaster. If the Senate successfully passes Crapo's legislation, it will have to go to the House for conference before it can make its way to the president's desk for approval.

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