Like Countable?

Install the App
TRY NOW

house Bill H.R. 1841

Loosening Securities Restrictions for (Mainly Big) Banks

Argument in favor

Will help diminish unnecessary losses to financial institutions and keep capital flowing to businesses that rely on CLOs for credit.

ScottWalker's Opinion
···
09/14/2015
"The problem is this entire regulatory environment.” Read more at http://www.nationalreview.com/corner/414609/two-scott-walkers-eliana-johnson
Like (7)
Follow
Share
JebBush's Opinion
···
09/14/2015
"I would beware of regulations in general. I think they need to be thoughtful." Read more at http://www.reuters.com/article/2015/06/09/usa-election-bush-banks-idUSL1N0YV1XK20150609
Like (2)
Follow
Share
Betsy's Opinion
···
09/28/2016
Bernie Sanders said this of the bill: "if an institution is too big to fail, then it is too big to exist. Period." By his own logic, the government should be smaller too.
Like (1)
Follow
Share

Argument opposed

Undermines risk protections in Volcker Rule, chipping away at regulatory oversight of the banking industry created post-recession.

BernieSanders's Opinion
···
09/14/2015
“If an institution is too big to fail, it is too big to exist and that is the bottom line.” [twitter.com]
Like (83)
Follow
Share
ElizabethWarren's Opinion
···
09/15/2015
“to reduce risks to the financial system by limiting banks’ ability to engage in activities other than socially valuable core banking activities.” [nytimes.com]
Like (20)
Follow
Share
DonaldTrump's Opinion
···
09/14/2015
"If Volcker is happy with the rule we got, then so am I." [nationalreview.com]
Like (17)
Follow
Share

What is House Bill H.R. 1841?

This bill tweaks the fine print of the Volcker Rule—part of a law designed to bar banks from making risky trades with their own money. 

The bill focuses on high-risk CLOs, or collaterized loan obligations, issued before January 31, 2014. CLOs are complex securities that bundle together corporate loans and bonds. The majority are held by large U.S. banks. 

Under the bill, banks and financial companies that own CLOs and are regulated by the Federal Reserve would have until July 2019 to comply with the Volcker Rule with regards to their CLOs.

Impact

Banks and financial companies that own CLOs; the Board of Governors of the Federal Reserve System.

Cost of House Bill H.R. 1841

A CBO cost estimate is unavailable.

More Information

In Depth: Sponsoring Rep. Garland Barr (R-KY) explained in a press release after the bill passed the House in 2014 that the bill:

"is a bipartisan clarification that fixes a regulatory problem impacting jobs that support families in Kentucky and across the United States. I am glad that the House has come together to advance this commonsense solution that would ensure American employers are able to obtain affordable financing to expand their businesses and create much-needed jobs for Kentuckians."

On the other side, Rep. Michael E. Capuano (D-MA) opposed the bill, arguing that it was unnecessary because banks can still hold lots of CLOs under the Volcker rule. 
“CLOs are not being killed. They are being limited in a very small way only to target the most risky CLOs. A little limitation is good for the American system.”

Of Note: The vast majority of CLOs are owned by just two banks. According to Americans for Financial Reform, two-thirds of all bank-owned CLOs are owned by JP Morgan and Citigroup.

This bill has been introduced before. In 2014, Rep. Barr introduced the legislation to the House and it passed the House before being stalled in the Senate. 

Media:

(Photo Credit: Flickr user rankinstones)

AKA

Restoring Proven Financing for American Employers Act

Official Title

To amend section 13 of the Bank Holding Company Act of 1956, known as the Volcker Rule, to exclude certain debt securities of collateralized loan obligations from the prohibition against acquiring or retaining an ownership interest in a hedge fund or private equity fund.

bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
  • The house has not voted
      house Committees
      Committee on Financial Services
    IntroducedApril 16th, 2015
    "The problem is this entire regulatory environment.” Read more at http://www.nationalreview.com/corner/414609/two-scott-walkers-eliana-johnson
    Like (7)
    Follow
    Share
    “If an institution is too big to fail, it is too big to exist and that is the bottom line.” [twitter.com]
    Like (83)
    Follow
    Share
    “to reduce risks to the financial system by limiting banks’ ability to engage in activities other than socially valuable core banking activities.” [nytimes.com]
    Like (20)
    Follow
    Share
    "If Volcker is happy with the rule we got, then so am I." [nationalreview.com]
    Like (17)
    Follow
    Share
    Yes. Let's trust the big banks again. It's been 7 years and we can't remember that far back in time.
    Like (10)
    Follow
    Share
    "Despite the 2008 meltdown on Wall Street, just five banks still control half the industry's $15 trillion in assets, and not a single executive was ever convicted of a crime. We must reinstate Glass-Steagall, empower regulators to hold law-breakers accountable, and break up big banks before they break us. We need stronger protections for American families, not billion-dollar banks." [martinomalley.com]
    Like (7)
    Follow
    Share
    Never ever should this be done. They are too big & too dangerous for the economy now. NO, NO, NO!!!
    Like (3)
    Follow
    Share
    "I would beware of regulations in general. I think they need to be thoughtful." Read more at http://www.reuters.com/article/2015/06/09/usa-election-bush-banks-idUSL1N0YV1XK20150609
    Like (2)
    Follow
    Share
    Do we trust big money banks to do the right thing? No
    Like (2)
    Follow
    Share
    The big bank bailout was paid off but it put our nation in a precarious position and validated the use of fraud in business. Do I think the big banks learned their lesson and are ready to do business with integrity and an eye on a long strategic process as opposed to shortcuts...No. They've earned their sanctions and regulations based on their behavior and lack of leadership.
    Like (2)
    Follow
    Share
    Hmmmmmmm...I wonder how much the good Congressman was paid to introduce THIS bill. It's so easy to spot a GOP/TP bill before even seeing who the sponsor is.
    Like (2)
    Follow
    Share
    No. Relying too heavily on big banks lending. Leads to more risk. Which makes it more likely the whole system will collapse again like it did in 2008. Banks need to ensure they have enough capital to cover a crisis.
    Like (1)
    Follow
    Share
    Really do you realize that doing this would start another collapse. Last time the collapse happened was because the GLBA was signed with Clinton Administration. This bill deregulated and repealed parts of the Glass Steagull Act. This also ruined the economy and continues to.
    Like (1)
    Follow
    Share
    Big banks should be broken up into regional entities
    Like (1)
    Follow
    Share
    They need to be tightened
    Like (1)
    Follow
    Share
    how would this be a good idea?
    Like (1)
    Follow
    Share
    The digital world is not getting safer so far. Keep them accountable and safe.
    Like (1)
    Follow
    Share
    just repuglicans trying to have the taxpayer bailout the banks again
    Like (1)
    Follow
    Share
    Hell no! We don't need to give big banks less regulation. They need a damn sight more.
    Like (1)
    Follow
    Share
    If anything more stringent regulation is required.
    Like (1)
    Follow
    Share
    MORE