Committee Passes Reform Bills to Support Economic Growth and Increase Accountability of Washington Regulators
WASHINGTON,
November 4, 2015 -
The Financial Services Committee approved several bills today designed to support greater economic growth and increase oversight and accountability of unchecked financial regulators.
“Instead of ending ‘Too Big to Fail’ and taxpayer-funded Wall Street bailouts, the Dodd-Frank Act enshrines them into law. Dodd-Frank increases the power and control that largely unaccountable Washington bureaucrats have over our economy. The results have left hardworking taxpayers with fewer choices, higher costs and an anemic economy of shrinking paychecks. The reform bills approved by the committee today will help build a healthier economy for all Americans and put in place needed transparency, accountability and checks and balances on powerful bureaucracies,” said Chairman Hensarling.
A list and summary of the bills passed today as follows:
H.R. 1309, the Systemic Risk Designation Improvement Act of 2015
Sponsor: Rep Blaine Luetkemeyer (R-MO) and co-sponsored by 18 House Democrats
Summary: H.R. 1309 would more closely base the regulation of financial institutions on risk rather than on arbitrary asset size. The Dodd-Frank Act does not consider the fact that community banks, mid-size banks and large banks often have completely different business models, resulting in regulatory scrutiny of companies based merely on size rather than activity.
The Financial Services Committee approved the bill today by a vote of 39-16.
H.R. 1478, the Policyholder Protection Act of 2015
Sponsors: Reps. Bill Posey (R-FL) and Brad Sherman (D-CA)
Summary: H.R. 1478 prohibits federal banking regulators from moving the assets of state-regulated insurance companies, structured under larger financial firms, to a bank if the state insurance regulator determines the transfer would harm the status of the insurer.
The Financial Services Committee approved the bill today by a vote of 57-0.
H.R. 1550, the Financial Stability Oversight Council Improvement Act of 2015
Sponsors: Reps. Dennis Ross (R-FL) and John Delaney (D-MD)
Summary: H.R. 1550 increases transparency of FSOC and provide an opportunity for a company to eliminate risk rather than being designated systemically important.
The Financial Services Committee approved the bill today by a vote of 44-12.
H.R. 1660, the Federal Savings Association Charter Flexibility Act of 2015
Sponsors: Reps. Keith Rothfus (R-PA) and Jim Himes (D-CT)
Summary: H.R. 1660 allows a federal savings association to choose to operate under the supervision of the Office of the Comptroller of the Currency (OCC) with the same rights and duties of a national bank.
The Financial Services Committee approved the bill by voice vote.
H.R. 2209, to require the appropriate Federal banking agencies to treat certain municipal obligations as level 2A liquid assets, and for other purposes
Sponsor: Rep. Luke Messer (R-IN)
Summary: H.R. 2209 requires federal banking agencies to treat certain municipal securities that are liquid, readily marketable, and investment grade as of the calculation date as high-quality level 2A assets.
The Financial Services Committee approved the bill today by a vote of 56-1.
H.R. 3340, the Financial Stability Oversight Council Reform Act
Sponsor: Rep. Tom Emmer (R-MN)
Summary: H.R. 3340 makes FSOC and the Office of Financial Research accountable to taxpayers by making both part of the regular congressional appropriations process. In addition, the bill creates quarterly reporting requirements for the Office of Financial Research and requires OFR to provide at least a 90-day public notice and comment period before issuing any report, rule or regulation.
The Financial Services Committee approved the bill today by a vote of 33-24.
H.R. 3557, the FSOC Transparency and Accountability Act
Sponsor: Rep. Scott Garrett (R-NJ)
Summary: H.R. 3557 makes FSOC subject to both the Government in Sunshine Act and the Federal Advisory Committee Act. The bill allows all members of the commissions and boards represented on FSOC to attend and participate in FSOC meetings.
The Financial Services Committee approved the bill today by a vote of 33-24.
H.R. 3738, the Office of Financial Research Accountability Act of 2015
Sponsors: Reps. Ed Royce (R-CA) and Patrick Murphy (D-FL)
Summary: H.R. 3738 requires the OFR to provide a detailed strategic plan regarding its priorities and to develop and implement a cybersecurity plan to protect the data that it collects.
The Financial Services Committee approved the bill today by a vote of 35-22.
H.R. 3868, the Small Business Credit Availability Act
Sponsor: Rep. Mick Mulvaney (R-SC)
Summary: The bill modernizes the regulation of business development companies (BDC), increasing the ability of BDCs to lend to small businesses and facilitate the flow of capital to Main Street.
The Financial Services Committee approved the bill today by a vote of 53-4.
H.R. 3857, to require the Board of Governors of the Federal Reserve System and the Financial Stability Oversight Council to carry out certain requirements under the Financial Stability Act of 2010 before making any new determination under section 113 of such Act, and for other purpose.
Sponsor: Rep. Luke Messer (R-IN)
Summary: H.R. 3857 sets requirements before FSOC can designate a non-bank financial institution for heightened Fed supervision.
The Financial Services Committee approved the bill today by a vote of 33-24.
