Legislative Update: Senate Approves Financial Regulatory Reform Bill

After weeks of debate and discussion over 100 amendments, yesterday the Senate passed a financial reform bill by a vote of 67-31. The Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155) makes bipartisan changes to the Dodd-Frank Act that will   right-size post-crisis rules that were imposed on small and regional lenders after the global financial crisis.

Important to BDA members, S. 2155 includes a provision that directs the FDIC, the Federal Reserve, and the OCC to classify qualifying investment-grade, liquid and readily-marketable municipal securities as level 2B liquid assets under the agencies’ liquidity coverage ratio rules. BDA has long supported “high-quality liquid asset” (HQLA) provisions like this one.

BDA will send a thank you letter to all the Senators thanking them for the HQLA provision and passage of the bill.

The House passed its version of financial reform legislation, the Financial CHOICE Act (H.R. 10), last June. Both H.R.10 and S. 2155 have a variety of similar provisions, including a type of regulatory off-ramp, however S. 2155 does not roll back Dodd-Frank regulations to the same degree as the CHOICE Act. Because of these differences, it will be challenging for both the House and Senate to conference a bill together and the future of a financial regulatory bill getting signed into law is uncertain.
BDA will continue to keep you updated as financial regulatory reform proposals advance through Congress.
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