Tenney, Brindisi respond to Dodd-Frank rollbacks

Cornelia Mascio
Mag 26, 2018

They point to increases in banks' lending and profits since Dodd-Frank's enactment in 2010 as debunking the assertion that excessive regulation of the banking industry is stifling growth.

President Donald Trump on Thursday signed into law the first rewrite of USA banking rules introduced following the 2007-2009 financial crisis.

The bill is viewed as a big victory for small and mid-sized banks, which many experts believe have been unduly burdened by the Obama-era law, known as Dodd-Frank.

Congresswoman Claudia Tenney contributed two pieces of legislation to the reform bill, including one that extends the time between bank accounting exams, and another that rolls back escrow regulations. The bill would raise that threshold to $250 billion in assets, potentially allowing several high-profile financial institutions, including American Express and Ally Financial, to escape the extra regulatory scrutiny. On Thursday he told reporters that he wants to push more similar efforts with respect to regulation and thanked members of Congress for their hard work in getting this done. Banks larger than $50 billion dollars in capital were considered too critical to the US financial system to fail without catastrophic results to the economy.

Mortgages held in portfolio by banks with less than $10 billion in assets are automatically designated as "Qualified Mortgages", exempting them from ability-to-repay underwriting requirements by the Consumer Financial Protection Bureau.

The House voted 258-159 on Tuesday to approve legislation rolling back the law.

Regions Bank, headquartered in Birmingham, will no longer have to submit to stress tests from the Federal Reserve to determine if it could weather a financial crisis.

UTICA, N.Y. -President Trump fulfilled his promise to "do a big number" on the Dodd-Frank Wall Street Reform and Consumer Protection Act Thursday evening.

Banks that issue fewer than 500 mortgages a year and are in good standing with regulators would also not be required to report certain data to the government.

However, it is not clear if there is enough appetite among moderate Senate Democrats to advance such legislation, after a bruising fight to pass the bank bill.

However, liberal Democrats opposed the rollback.

USA banks' net income climbed to $56 billion in the January-March quarter, a 27.5 percent increase from a year earlier, as profits were revved up by the corporate tax cuts enacted late last year, the Federal Deposit Insurance Corp. reported Tuesday. That kicked in for banks with more than $50 billion in assets.

The bill also provides smaller banks with relief from the so-called Volcker Rule, which sought to discourage banks from reckless trading by barring depository institutions from investing in hedge funds and private equity funds, as well as from engaging in proprietary trading.

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