- Not enactedThe President has not signed this bill
- The senate has not voted
Committee on Banking, Housing, and Urban Affairs
- senate Committees
- The house Passed October 3rd, 2017Passed by Voice Vote
Committee on Financial ServicesIntroducedMarch 20th, 2017
- house Committees
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Municipal Finance Support Act of 2017
To require the appropriate Federal banking agencies to treat certain municipal obligations as no lower than level 2B liquid assets, and for other purposes.
Municipal Finance Support Act of 2017 (Sec. 2) This bill amends the Federal Deposit Insurance Act to require certain municipal obligations to be treated as high-quality liquid assets if they are investment grade, liquid, and readily marketable. Under current law, high-quality assets include level 1, level 2A, and level 2B liquid assets.
Treating investments as cash has proved disastrous in the past. We need to learn from history. This bill only applies to 5% of banks, according to the CBO, and offers little in the way of benefit, even to them. What it does do is open a door to irresponsibility. That is a door we have already learned needs to be kept shut.