Middle-Market Public Policy Roundup
President Trump signs the bipartisan banking bill, the Fed weighs Volcker Rule changes, and riders in the House appropriations bill look unlikely.
In this week’s roundup, we look at the bipartisan banking bill signed on Thursday by President Trump and proposed changes to the Volcker Rule. We also discuss the House appropriations bill and whether riders included in the bill are likely to make it through the legislative process intact.
Bipartisan Banking Bill Signed by President Trump
On Thursday, President Donald Trump signed into law a bill that rolls back banking regulations included in the 2010 Dodd-Frank Act. The new bipartisan law, which represents the first significant overhaul of stricter banking rules passed in the wake of the 2008 financial crisis, shows the massive amount of political will required to achieve even modest changes to the Dodd-Frank Act.
In garnering the legislative support needed to pass, the new law signifies an important step in restoring regulatory balance in the financial services marketplace by the Republican-controlled Congress.
Read more about the bill’s provisions and what lies ahead for banking regulation.
Regulatory Changes to the Volcker Rule to Be Considered
On May 30, the Federal Reserve will hold a meeting examining proposed changes to the Volcker Rule. The complex rule, a centerpiece of the 2010 Dodd-Frank Act, prohibits banks from making proprietary trades. Under consideration are changes surrounding the definition of “proprietary trading,” the treatment of overseas funds, and a provision that would shift the need to prove compliance in trading away from banks and require regulators to prove violations.
Given that five separate federal agencies share the responsibility for implementing the Volcker rule, this meeting marks the first step in a long process to change the rule through regulation.
Given that five separate federal agencies share the responsibility for implementing the Volcker rule, this meeting marks the first step in a long process to change the rule through regulation.
House Appropriations Bill Includes Riders Unlikely for Passage
The House Appropriations Committee released its proposed FY19 Financial Services and General Government Appropriations bill on Wednesday, which included various House Financial Services Committee bills that Chairman Jeb Hensarling, R-Texas, previously tried to include in the Dodd-Frank reform bill. However, Senate Appropriations Committee Chairman Richard Shelby, R-Ala., has signaled that he wants to keep the bill free of any “riders” so that they can be processed individually on the Senate floor. As such, it is highly unlikely that the HFSC bills that were included on the House side stay intact throughout the legislative process.
Check back each Friday for the weekly Public Policy Roundup. Is there a policy issue you’d like us to cover? Send your suggestions to MMG Editor Kathryn Mulligan at kmulligan@acg.org.
Maria Wolvin is ACG Global’s vice president and senior counsel, public policy.
Ben Marsico is ACG Global’s manager of legislative and regulatory affairs.
