Senate Bill 2155 passed the Senate on March 14, 2018 but must still be considered for a vote in the House of Representatives before being reconciled, voted upon again in both the House and Senate, and signed into law by the President. As such, aspects of the following may change and should not be executed as final until such legislative action is complete.
On March 14, 2018, the U.S. Senate passed S.2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, by a vote of 67-31. Key provisions of the bill are directed toward amending the 2010 Dodd-Frank Act and address regulatory tailoring for certain bank holding companies (BHCs), regulatory easing for small banks and credit unions (collectively, community banks), and new consumer protections.
The bill has now been forwarded to the House of Representatives for consideration. Representative Jeb Hensarling, Chairman of the House Committee on Financial Services, has said he would seek to combine the Senate-passed bill with other financial services bills that have passed the House with bipartisan support. News reports suggest as many as 30 bipartisan measures have been identified.
Highlights of the Senate-passed S.2155 follow.
The Senate bill’s most notable provisions would tailor certain regulatory requirements applicable to BHCs depending on size:
Regulatory relief for community banks is one of the primary goals of regulatory reform legislation being considered in Congress. Key provisions would:
Title III of S.2155 would introduce a variety of new consumer protections including provisions that would:
While the Senate bill was passed on a bipartisan basis, the chances that the bill will become law are largely dependent on the House of Representatives. House changes to the Senate bill would require a bicameral conference to negotiate a final bill that would then be required to again pass through both the House and the Senate. The addition of any major or controversial revisions, such as provisions to significantly change the Consumer Financial Protection Bureau or repeal the Dodd-Frank Act Orderly Liquidation Authority, would reduce the likelihood of negotiating a bipartisan, bicameral bill that could pass out of the Senate. It is more likely that any additive measures put forth by the House will be from among the smaller, stand-alone bills recently passed in the House, many of which were derived from the House-passed regulatory reform bill, the Financial CHOICE Act.