House May Take Action on Bank Bill This Month — GOP Leader

By Jeff Bater

House GOP leader Kevin McCarthy (Calif.) raised the possibility of a floor vote later this month on a Senate bill that reduces regulation for small and midsize banks.

The majority leader said the lower chamber may take “further action on Dodd-Frank reform” – including potential action on S. 2155 - before the House leaves for its Memorial Day recess, but didn’t include it on his list of what lawmakers will consider next week. That leaves the week of May 21 as the window for action on the bill that would reduce Dodd-Frank Act regulations on community banks and significantly lower the number of regional banks subjected to tighter capital and other rules.

“I look forward to both chambers taking additional policy actions in this space in the coming weeks as we continue to improve access to capital for American families and businesses,” McCarthy said.

Speaking at a Capitol Hill news conference May 8, House Speaker Paul Ryan (Wisconsin) said the House will take up the Senate bill and move a package of bills supported by House Financial Services Committee Chairman Jeb Hensarling (R-Texas). His remarks signaled the end of a standoff over bank deregulation between moderate Democrats who backed S. 2155 and Hensarling, the sponsor of a more ambitious bank deregulation bill approved by the House last year.

House GOP lawmakers had pushed for more changes to Dodd-Frank. The Senate bill, sponsored by Senate Banking Committee Chairman Mike Crapo (R-Idaho), does not include House Republican priorities such as altering the Consumer Financial Protection Bureau’s structure and funding.

Senate Republican leader Mitch McConnell (Ky.) said in a statement May 8 he has been working closely with Ryan and Hensarling to get S. 2155 to President Donald Trump for his signature. “I’m glad this will be happening soon,” McConnell said. “We look forward to an additional reform package coming together that can pass the House and Senate this year.”

To contact the reporter on this story: Jeff Bater in Washington at jbater@bloomberglaw.com

To contact the editor responsible for this story: Michael Ferullo at mferullo@bloomberglaw.com

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