House Passes Financial Choice Act
Late on June 9th, the House passed the Financial Choice Act. The legislation is Financial Services Committee Jeb Hensarling’s sweeping, 600-page bill aimed at reforming parts of the Dodd-Frank Act’s extensive supervisory regime and providing regulatory relief for banks. The bill passed by a mostly party line vote of 233 to 186 and includes a number of regulatory relief provisions long sought by the banking community inlcuding NBA. Many of the provisions were supported by ABA as part of their Blueprint for Growth plan that includes a Qualified Mortgage safe harbor for mortgage loans held in portfolio, more tailored supervision based on an institution’s risk profile and business model, greater flexibility for savings associations, relief from various reporting requirements, and repeal of the Volcker Rule. Read more at aba.com
Community Bankers Meet with President Trump to Discuss Regulatory Challenges
WASHINGTON — A diverse group of community bankers from across the country met with President Trump today to discuss how the current regulatory environment affects their ability to serve customers and drive economic growth.
Among the attendees were ABA President and CEO Rob Nichols, ICBA President and CEO Camden R. Fine, and nine bankers, including ABA officers and several members of key ABA committees. Topics of discussion included the importance of tailored regulation, the need to hold the Consumer Financial Protection Bureau more accountable, regulatory changes to increase small business and mortgage lending, the impact of compliance burden, and the need to ensure regulatory capital standards are aligned with actual risks and conducive to credit availability.
President Signs Executive Orders Concerning Banking Industry
President Donald Trump signed executive orders this morning that deal directly with the banking industry's most difficult obstacle for success. The executive order mandates a comprehensive review of all regulations stemming from the Wall Street Reform and Consumer Protection Act – commonly referred to as "Dodd-Frank."
The order directs the Department of Labor to stop implementing the so-called fiduciary rule. Earlier this week, the president called Dodd-Frank a "disaster" and vowed to "do a big number on it."
Executive Order Suspends New Regulations
On January 23, 2017, Politico published a letter sent by Donald Trump's Assistant and Chief of Staff Reince Preibus to the heads of executive departments and agencies putting a hold on new regulations. The following are the primary directives in the memo, intended to ensure that appointees of the new President have the chance to put their stamp on anything new.
U.S. Court of Appeals Finds CFPB Structure Unconstitutional
The recent opinion issued today by the U.S. Court of Appeals for the District of Columbia Circuit finds for PHH Corporation against the Consumer Financial Protection Bureau (CFPB).