Glass-Steagall Revival Attempt in House Faces Long Odds

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By Rob Tricchinelli

A bipartisan pair of representatives are proposing to reinstate the Glass-Steagall Act, a 1930s law that separated commercial and investment banking.

Reps. Marcy Kaptur (D-Ohio) and Walter Jones (R-N.C.) offered the long-shot measure as an amendment to the Financial Choice Act (H.R. 10), a wide-ranging Dodd-Frank replacement bill from House Financial Services Committee Chairman Jeb Hensarling (R-Texas) that is scheduled to reach the floor the week of June 5.

The amendment would strike all of the Choice Act and replace it with a revived Glass-Steagall, which the lawmakers had introduced as a standalone bill (H.R. 790) in February. Jones and Rep. Mike Coffman (Colo.) are the only Republican cosponsors, joining Kaptur and 46 other Democrats.

The amendment is unlikely to pass given widespread House Republican support for the Choice Act, which would revamp many parts of Dodd-Frank and offer banks an off-ramp from regulation if they meet heightened capital standards.

Fifteen Amendments

Fifteen Choice Act amendments were submitted to the House Rules Committee by the June 2 morning deadline—the bipartisan one and seven from each party. The committee typically considers late amendments that are filed before the hearing.

The House comes back in session June 6, and the first step is for the Rules Committee to decide whether the various amendments are in order before sending them and the underlying bill to the floor.

Among the other amendments, Rep. Jason Chaffetz (R-Utah) proposed increasing congressional scrutiny of the Public Company Accounting Oversight Board, Rep. Ken Buck (R-Colo.) proposed more oversight of the Consumer Financial Protection Bureau’s office space, and Rep. Trey Hollingsworth (R-Ind.) proposed relaxing issuing standards for closed-end funds.

To contact the reporter on this story: Rob Tricchinelli in Washington at rtricchinelli@bna.com

To contact the editor responsible for this story: Seth Stern at sstern@bna.com

For More Information

For the list of amendments, visit https://rules.house.gov/bill/115/hr-10

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