In a letter to the House Financial Services Committee today, ABA urged members of Congress to vote in favor of the TAILOR Act, which would direct financial regulators to tailor regulatory actions based on the sizes, business models, risk profiles and other differentiating characteristics of the institutions they supervise. The bill — which will be considered by the committee tomorrow — is a key part of ABA’s Agenda for America’s Hometown Banks and was crafted with the assistance of state bankers associations and ABA.
“We believe [the TAILOR Act] offers the possibility of real and targeted relief for banking institutions facing the avalanche of new regulations coming out of the financial crisis while rolling back none of the important protections recently put in place,” the association said.
ABA and the American Bankers Insurance Association also expressed support for a bill that would expand the availability of private flood insurance policies as an alternative to the National Flood Insurance Program, and ABA supported a bill that would help preserve the collateralized loan obligations market, which provides credit to non-investment grade companies.