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house Bill H.R. 4790

Simplifying Compliance With the “Volcker Rule” for Banks

Argument in favor

This bill would streamline the regulatory rulemaking and enforcement process for the Volcker Rule by centralizing the rulemaking process with the Federal Reserve and oversight with banking agencies. It would ease the burden on local banks and expand access to capital.

SneakyPete's Opinion
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04/08/2018
“H.R. 4790 - Volcker Rule Regulatory Harmonization Act” I strongly support the passage of the bill (H.R. 4790 - Volcker Rule Regulatory Harmonization Act) Which would streamline the regulatory rulemaking and enforcement process for the Volcker Rule by centralizing the rulemaking process with the Federal Reserve and oversight with banking agencies. It would ease the burden on local banks and expand access to capital. The Volcker Rule restricts financial institutions insured by the Federal Deposit Insurance Corporation from engaging in certain proprietary trading of securities, derivatives, commodity futures, and options on those instruments. With some exceptions, the rule also prohibits those institutions from owning, sponsoring, or having certain relationships with hedge funds and private equity funds. Rulemaking responsibilities under the Volcker Rule are shared among a group of financial regulatory institutions, including the Board of Governors of the Federal Reserve System. 4*8*18. SEE: https://www.cbo.gov/publication/53712
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Neil's Opinion
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04/12/2018
In my opinion people with disabilities should have respect, and should be respected. Everyone is equal and all should have an opportunity to change lives. including our own.
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Larry's Opinion
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04/09/2018
Free up the small local banks and keep an eye on the big ones that are too big to fail.
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Argument opposed

Regulations related to the Volcker Rule should continue to be drafted and overseen by multiple agencies, rather than centralized with the Federal Reserve and specific regulators. It would undermine the Volcker Rule’s effectiveness at preventing excessive speculative activities.

OlderNWiser's Opinion
···
04/08/2018
In my 76 years I have seen Deregulation destroy our economy repeatedly. Is it coincidence that this happens with Republican Administrations? Stop harming the poor for even more profit of the -1%. Please.
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Chickie's Opinion
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04/12/2018
No, No, No!!!! This bill provides a gapping loophole for banks to cater to the rich. As always, the working class and the poor are left way behind.
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Erin's Opinion
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04/12/2018
No, because of the words “exclusive rights” and “exemptions.” Did we learn nothing from the previous banking crisis?
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What is House Bill H.R. 4790?

This bill would aim to streamline banks’ compliance with the Volcker Rule by giving the Federal Reserve’s Board of Governors exclusive rulemaking authority and exempting community banks with less than $10 billion in assets and trading liabilities less than 5 percent of total assets. A bank’s primary regulator would have sole authority for examinations and enforcement. The Volcker Rule restricts financial institutions that are insured by the Federal Deposit Insurance Corporation (FDIC) from owning or sponsoring hedge funds and private equity funds. Under current law, rulemaking regarding the Volcker is shared among several regulatory institutions, including the Fed’s Board of Governors.

Impact

Community banks and banks subject to the Volcker Rule; and financial regulators, particularly the Federal Reserve.

Cost of House Bill H.R. 4790

The CBO estimates that enacting this bill would not significantly impact the federal budget or the deficit.

More Information

In-Depth: Sponsoring Rep. French Hill (R-AR) introduced this bill to improve coordination among the federal banking regulatory agencies as it relates to the Volcker Rule:

“As a former community banker, I have dealt with the confusion associated with regulatory inconsistencies across the federal banking agencies, the Volcker Rule having become one of the most indecipherable. Given the Rule has over 270 federal register pages and names four different agencies as regulatory authorities, my bill attempts to streamline the regulatory rulemaking and enforcement process. This simple clarification will not only ease the regulatory burden for our local banks, it will enhance capital formation and financing options.”

Some House Democrats expressed opposition to this bill writing in its committee report:

“H.R. 4790 is the latest attempt to weaken the Volcker Rule, a cornerstone of Wall Street reform enacted in the wake of the financial crisis that prohibits taxpayer-backed banks from risky proprietary trading and from owning hedge and private equity funds. The bill would create a dangerous loophole by providing a blanket exemption from the Volcker Rule for banks with consolidated assets of $10 billion or less and with less than 5% of those assets in trading assets. The bill would also delegate sole rulemaking authority on the Volcker Rule to the Federal Reserve, inappropriately and unnecessarily taking away the jurisdiction of the FDIC, OCC, SEC, and CFTC and making it easier for the Trump administration to weaken or repeal the rules.”

This bill passed the House Financial Services Committee on a 50-10 vote and has the support of three bipartisan cosponsors, including two Democrats and one Republican.


Media:

Summary by Eric Revell

(Photo Credit: HaizhanZheng / iStock)

AKA

Volcker Rule Regulatory Harmonization Act

Official Title

To amend the Volcker rule to give the Board of Governors of the Federal Reserve System sole rulemaking authority, to exclude community banks from the requirements of the Volcker rule, and for other purposes.

bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
      senate Committees
      Committee on Banking, Housing, and Urban Affairs
  • The house Passed April 13th, 2018
    Roll Call Vote 300 Yea / 104 Nay
      house Committees
      Committee on Financial Services
    IntroducedJanuary 12th, 2018

Log in or create an account to see how your Reps voted!
    “H.R. 4790 - Volcker Rule Regulatory Harmonization Act” I strongly support the passage of the bill (H.R. 4790 - Volcker Rule Regulatory Harmonization Act) Which would streamline the regulatory rulemaking and enforcement process for the Volcker Rule by centralizing the rulemaking process with the Federal Reserve and oversight with banking agencies. It would ease the burden on local banks and expand access to capital. The Volcker Rule restricts financial institutions insured by the Federal Deposit Insurance Corporation from engaging in certain proprietary trading of securities, derivatives, commodity futures, and options on those instruments. With some exceptions, the rule also prohibits those institutions from owning, sponsoring, or having certain relationships with hedge funds and private equity funds. Rulemaking responsibilities under the Volcker Rule are shared among a group of financial regulatory institutions, including the Board of Governors of the Federal Reserve System. 4*8*18. SEE: https://www.cbo.gov/publication/53712
    Like (19)
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    In my 76 years I have seen Deregulation destroy our economy repeatedly. Is it coincidence that this happens with Republican Administrations? Stop harming the poor for even more profit of the -1%. Please.
    Like (146)
    Follow
    Share
    No, No, No!!!! This bill provides a gapping loophole for banks to cater to the rich. As always, the working class and the poor are left way behind.
    Like (67)
    Follow
    Share
    No, because of the words “exclusive rights” and “exemptions.” Did we learn nothing from the previous banking crisis?
    Like (31)
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    I am not comfortable turning over complete regulation authority to a single entity, the Fed Reserve. This bill seems not to be focused on simplifying the Volcker process, but could impose a single and likely a partisan oversight authority. This bill has no agreement across the isle.
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    Instead of deregulating the banks, how about enforcing safety background checks on everyone who purchases a firearm, enact a fair DREAM Act, and end the needless wars we are currently in.
    Like (12)
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    Once again politicians selling out our country to the banks
    Like (10)
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    Haven’t we learned our lesson.
    Like (7)
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    We must stop deregulation because there must be a set standard. That’s regulating to ensure financial sector does the right thing to maintain stability
    Like (7)
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    In my opinion people with disabilities should have respect, and should be respected. Everyone is equal and all should have an opportunity to change lives. including our own.
    Like (6)
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    This bill would undermine the vital regulations that went into place after the financial crisis. The Vlocker rule exists to prevent excessive speculation and loopholes should NOT be created. We have only just recovered from the recession and many industries are still struggling to keep up. The last thing we need is another crash!
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    Do we really want to experience another great depression?
    Like (6)
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    Again. DO NOT DEREGULATE THE FINANCIAL INDUSTRY. Will you please learn history already? Deregulation leads to depression.
    Like (5)
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    Give banks an inch and they take a mile.
    Like (4)
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    Local and community banks should continue to be regulated via the Volcker Rule. Clarifying the rules to banks should be a separate piece of legislation.
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    No thanks! Nobody wants to go through that shit show again!
    Like (4)
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    Free up the small local banks and keep an eye on the big ones that are too big to fail.
    Like (4)
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    Stop deregulating banks. The federal government is supposed to protect the citizens, not undermine them.
    Like (4)
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    The average community bank has about $200M not $10B. I suspect the $10B cutoff is for the benefit of some wealthy donors.
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    I don't want the current administration to have an easier time of circumventing the spirit of the law. Make them jump through all of the hoops before Walstreet cronies get to go back to playing roulette with peoples retirement money.
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