The regulatory reform bill introduced by Senate Banking Committee Chairman Richard Shelby (R-Ala.) was approved by the committee yesterday. The ABA-supported bill would provide regulatory relief for community, mid-size and regional banks, tailor the regulatory structure for systemically important banks and begin restructuring within the Federal Reserve System and at Fannie Mae and Freddie Mac.
Although the bill cleared the committee on a 12-10 party-line vote, statements
from committee leaders pointed to further negotiations on elements of the bill,
including the asset threshold for systemically important banks. The bill keeps
the $50 billion threshold in place, but changes the process the regulators use
to make the determination for institutions below $500 billion. Ranking Member
Sherrod Brown (D-Ohio) signaled that he would support a higher designation
level than today’s $50 billion.
ABA President and CEO Frank Keating welcomed the bill’s advance. “This bill is
a significant step toward removing many of the statutory and regulatory
barriers that constrain banks’ ability to serve their customers and meet the
needs of their local communities,” he said. “We firmly believe that common
ground exists for financial reform in this Congress. We need to seize it and
move ahead together for the sake of our customers and the broader economy.”