Legislation to change the way banks are labeled “systemically important” is among the measures to be considered during a sprawling 23-bill markup in the House Financial Services Committee Oct. 11.
During the markup, which could easily last several days, lawmakers will consider bills dealing with emerging growth companies, broker-dealers, micro offerings, and initial public offerings.
Some of the bills were included in the Financial Choice Act (H.R. 10), a wide-ranging measure offered by Committee Chairman Jeb Hensarling (R-Texas) as a replacement to the Dodd-Frank Act. That package passed the House in June.
The markup reflects a new effort by Hensarling and other House leaders to move more modest legislation in piecemeal fashion, in hopes of attracting bipartisan support. Democratic backing is important to overcome 60-vote thresholds in the Senate, given Republicans’ slim majority in that chamber. In 2017, Congress and President Donald Trump have enacted into law several such bills tweaking securities laws, which had bipartisan backing.
A bill on systemic importance (H.R. 3312), sponsored by Rep. Blaine Luetkemeyer (R-Mo.), would remake the process used by the Financial Stability Oversight Council to manage systemic risk in the financial sector.
It is an updated version of legislation previously introduced by Luetkemeyer that would relieve regional and mid-sized banks from some regulatory scrutiny, an effort that has the backing of several Democrats on the committee, including Reps. Gregory Meeks (N.Y.), David Scott (Ga.), and Kyrsten Sinema (Ariz.).
The bill would undo a Dodd-Frank Act requirement that all banks with more than $50 billion in assets are by definition “systemically important.” Banks labeled “global systemically important” under federal rules would still have to abide by extra regulations, but other individual banks would be subject to additional requirements only if the Fed decided to impose them.
The Fed would then be able to put more scrutiny on banks based on their size, interconnectedness, uniqueness, global presence and complexity.
To contact the reporter on this story: Rob Tricchinelli in Washington at email@example.com
To contact the editor responsible for this story: Phyllis Diamond at firstname.lastname@example.org
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)