THE WEEK AHEAD: ANOTHER DODD-FRANK ROLLBACK BILL

Capitol DomeThe effort to roll back the Dodd-Frank Act continues in the House this week. The House Financial Services Committee (HFSC) is scheduled Sept. 13 to consider the Financial CHOICE Act—H.R. 5983—which has been dubbed the “Republican alternative” to Dodd-Frank.

The Financial CHOICE Act would, among other measures, repeal Dodd-Frank's Title II orderly liquidation authority, which authorizes the Federal Deposit Insurance Corp. to borrow from the Treasury to lend to a failing firm, buy its assets, guarantee its obligations and pay off its creditors.

Analysts don't believe the bill, sponsored by Chairman Jeb Hensarling (R-Texas), will make it through Congress. Instead, they see the Financial CHOICE Act as a platform for Dodd-Frank foes next year.

In other Dodd-Frank rollback news, the House passed a bill Sept. 9 that would reduce private equity firms’ registration and disclosure requirements. H.R. 5424 would lessen restrictions on advertising and exempt private equity funds from publishing certain details about the assets in their portfolios, currently required by the Securities and Exchange Commission’s Form PF. The Dodd-Frank Act requires private equity funds with more than $150 million under management to register with the SEC.

Finally, the HFSC’s Capital Markets subcommittee hearing on the SEC's shareholder proposal process, originally scheduled for Sept. 9, has been postponed to a later date that hasn't yet been determined.