Senators Perdue, McCaskill Team Up To Fix Financial Regulation
Legislation eases burdensome ‘Dodd-Frank’ regulations on regional banks
WASHINGTON, D.C. – U.S. Senators David Perdue (R-GA) and Claire McCaskill (D-MO) are working together to provide regional banks with regulatory relief from a burdensome Dodd-Frank financial regulation that restricts their ability to lend to consumers and businesses in their communities.
“Regional banks offer a lifeline to small businesses and entrepreneurs looking to create jobs,” said Senator Perdue. “Dodd-Frank overregulated these banks by placing them into the same category as huge banks with a global reach. This sent these banks’ compliance costs through the roof and limited their ability to do what they do best—support their communities. This legislation would actually test banks for systemic risk rather than forcing banks to comply with an arbitrary figure.”
“When even some of the architects of ‘Dodd-Frank’ agree the law is unnecessarily burdensome on regional banks, you know we’ve got a problem on our hands,” said Senator McCaskill. “This is a commonsense fix that’ll untie the hands of our small regional banks and return to them the flexibility to lend to Missouri customers who want to buy a house, or start a business. I’m glad to join Congressman Luetkemeyer’s efforts to help get this bill across the finish line in the Senate.”
The senators’ bill, the Systemic Risk Designation Improvement Act, gives the Federal Reserve the flexibility to exempt banks not designated as Globally Systemically Important Banks (G-SIBs) from reporting requirements and merger and acquisition limitations imposed by the Dodd-Frank law on institutions with more than $50 billion in assets. Currently, any financial institution with $50 billion in assets face stronger capital requirements and other regulatory burdens. The senators’ legislation would test larger financial institutions in a five-factor test: 1) size, 2) interconnectedness, 3) substitutability, 4) global cross-jurisdictional activity, 5) complexity.
View the bill text here.
Next Article Previous Article