CNN: House clears path to roll back post-crisis banking rules
CNN, May 16, 2018: House clears path to roll back post-crisis banking rules.
The House is set to vote next week on a Senate bill that would cut regulations for thousands of community banks and regional lenders, including State Street, BB&T and Sun Trust, according to a spokeswoman for House Majority Leader Kevin McCarthy on Wednesday.
The Senate’s bill would raise the threshold at which banks are considered “too big to fail.” That trigger, now set at $50 billion in assets, would rise to $250 billion. That means more than two dozen midsize US banks would be shielded from some Federal Reserve oversight.
They would no longer have to hold as much capital to cover losses on their balance sheets. They would not be required to have plans in place to be safely dismantled if they failed. And they would have to take the Fed’s bank health test only periodically, not once a year.
Community banks with less than $10 billion in assets would no longer have to comply with the so-called Volcker Rule. The rule bars financial institutions from making risky bets with money that is insured by taxpayers.