With the Financial Choice Act expected to pass in the House this afternoon, American Bankers Association President and CEO Rob Nichols said the association will now shift its focus to moving a regulatory reform bill through the Senate.
In an interview with Bloomberg Radio today, Nichols said he is optimistic about the chances for bipartisan reform. “There’s a recognition, and even a bipartisan one, that for the economy to move forward at a greater clip… we need to get the financial rule set properly calibrated and tailored to fit our financial markets today.” These calibrations include measures such as a Qualified Mortgage safe harbor for loans held in portfolio, the tailoring of regulations based on a bank’s business model and risk profile, and requiring a cost/benefit analysis for new regulations, all of which were included in the Choice Act.
While ABA supports these measures, Nichols noted that other parts of the Choice Act “will require further study” as reg relief conversations get underway in the Senate. Earlier today, ABA Chairman Dorothy Savarese testified at the Senate Banking Committee’s first hearing on regulatory reform for community banks and credit unions. The committee is expected to hold another hearing next week focusing specifically on midsize and regional banks.
