US Congress Setting Up to Ease Several Wall Street “Rules”
The Republican leader of the House Financial Services Committee plans to scale back banking reforms, curb the consumer finance agency and ease regulations on financial institutions and companies looking to raise capital, according to a proposal seen Thursday.
In a memo on the legislation he intends to introduce, Rep. Jeb Hensarling (R:TX) made several proposals, including 1 that Wall Street banks’ “stress tests” be performed every 2 years instead of annually as is done now.
He also said he would have the position of director of the controversial Consumer Financial Protection Bureau changed from its current protected status to a political appointment removable “at will” by the President under another change.
The memo outlined dozens of changes to the Financial Choice Act that Rep. Hensarling introduced last year and plans to reintroduce. His new bill is expected to pass the House of Representatives, but faces the Senate, where it will require 60 votes to pass.
The memo does not mention the Volcker Rule, which limits bank’s ability to make speculative investments in banks’ own accounts.
In his original bill he killed the Volcker Rule.
Its absence in the memo, which details his changes to the original bill, suggests he will again propose to eliminate the Volcker Rule.
It is very aggressive and a very good starting point to rolling back a lot of the rules and regulations.
Besides rewriting lending rules, Hensarling’s Choice Act would add more hurdles to the US Securities and Exchange Commission (SEC) enforcement program.
The bill would scale back a variety of rules for public companies, including some accounting and capital raising rules. It would also reduce regulations for credit rating agencies.