US Financial CHOICE Act passes House of Representatives
Latest news
US Financial CHOICE Act passes House of Representatives 09 June 2017Washington DC Reporter: Drew Nicol
Image: Shutterstock
US President Donald Trump’s efforts to turn back the clock by gutting the bulk of post-crisis regulation took another step forward yesterday, with the House of Representatives passing the Financial CHOICE Act unopposed.
The Financial CHOICE Act, which promises to repeal and replace key elements of the Dodd-Frank Act, including scrapping the Volcker Rule restrictions on short-term proprietary trading using banks’ own funds, will now face the Senate, where Democrats are expected to fiercely oppose it.
The bill would take away the the Financial Stability Oversight Council's mandate to designate non-bank financial institutions and utilities as ‘systemically important’, with those currently designated as such being freed from the additional associated regulatory standards.
It would also see an end to state-fund bank bailouts by eliminating the Federal Deposit Insurance Corporation's orderly liquidation authority and establishing new provisions regarding financial institution bankruptcy.
Certain banks may exempt themselves from specified regulatory standards if they maintain a certain ratio of capital to total assets and meet other specified requirements.
The ability of supervisory authorities to take action against entities for abusive practices would be blunted.
House financial services committee chairman Jeb Hensarling officially introduced the act in April, but a series of Democratic amendments and other delays were raised before the final vote was taken.
NO FEE, NO RISK 100% ON RETURNSIf you invest in only one asset servicing news source this
year, make sure it is your free subscription to Asset Servicing Times
Image: Shutterstock 