The House voted by a bipartisan 247-171 margin to pass an ABA-advocated bill expanding the regulatory relief offered under the Federal Reserve’s small bank holding company policy statement.
In coordination with international trade associations, earlier this week ABA led a delegation of U.S. banks to a Basel Committee on Banking Supervision meeting on the committee’s “step-in risk” proposal, which the committee intends to address the risk that a bank would provide non-contractual financial support to nonbank financial entities.
Sens. Ted Cruz (R-Texas) and Mike Lee (R-Utah) yesterday introduced an ABA-supported bill intended to rein in the Justice Department’s Operation Choke Point, which sought to curtail disfavored businesses by working through regulators to pressure financial institutions to end customer relationships with these businesses.
The House Financial Services Committee voted by a 33-20 margin to advance ABA-backed legislation that would stop direct funding of the CFPB by the Federal Reserve and instead subject the bureau to the regular congressional appropriations process.
In the latest round of public feedback on the “living wills” or resolution plans that the largest banks file to demonstrate they can be wound down in an orderly way, the Federal Reserve and FDIC today deemed the plans filed by Bank of America, the Bank of New York Mellon, J.P. Morgan Chase, State Street and Wells Fargo “not credible” or inadequate to facilitate an orderly resolution under the Bankruptcy Code.
The Department of Labor’s newly finalized rule expanding the definition of who counts as a fiduciary under the Employee Retirement Income Security Act is estimated to cost $31.5 billion over the next decade, along with requiring nearly 57,000 hours in compliance efforts.
ABA pressed DOL for a number of changes from the proposed rule, which was widely viewed as draconian and unworkable. Two significant revisions in particular were made specifically as a result of ABA’s advocacy.
The Labor Department’s final rule redefining who counts as a fiduciary under the Employee Retirement Income Security Act and Internal Revenue Code was released today and includes a number of revisions from its initial proposal, several of which were advocated by ABA.
Speaking at the agency’s community banking conference today, FDIC Vice Chairman Thomas Hoenig again offered a “legislative remedy” for excessive and ill-tailored regulatory burden for banks engaged in what he called “traditional banking activities,” which would encompass most community banks and some regional banks as well.
The Federal Reserve today issued its final rule counting certain municipal securities as high-quality liquid assets under the Liquidity Coverage Ratio — a step ABA has long advocated.