UPDATED: The full House is no longer expected later this week to vote on the ABA-advocated Systemic Risk Designation Improvement Act (H.R. 1309), which would eliminate the automatic designation of banks as systemically important based solely on asset size. Introduced by Rep. Blaine Luetkemeyer (R-Mo.), the bill recognizes that regulators should consider many different components of risk.
“The bill, which has 135 cosponsors — 115 Republicans and 20 Democrats — has a great chance of passing the House next week,” said ABA EVP James Ballentine in a Friday memo urging state bankers associations to contact their lawmakers. “A significant vote in the House will give the bill momentum when it goes to the Senate and will also send a clear message to the regulatory agencies that regulatory tailoring is needed.”
H.R. 1309, which passed by a strong bipartisan vote in the House Financial Services Committee, is a key part of ABA’s Agenda for America’s Hometown Banks.
Editor’s note: This article was updated on Sept. 19 after the bill was pulled from the House calendar.
