Hensarling Dodd-Frank Reform Bill:
If a bank maintains 10% Tier 1 capital and is CAMEL 1 or 2, then the bank receives exemptions from DFA and Basel III. Additionally, the bill would:
- Repeal FSOC and replace with a new bankruptcy chapter.
- Replace single CFPB director with bipartisan commission.
- Place CFPB under Congressional appropriations process.
- Require CFPB to seek permission before gathering personal information.
- Enhance SEC penalties for financial fraud.
- Allow for QM loans held in portfolio, TAILORed regulation based on the size of the bank, appeals of examiner determinations and timely responses after exams.
- Repeal of Volcker rule.
- Repeal of Durbin interchange provision.
Other Issues Pending at the Federal Level:
- Patent troll venue reform.
- Regulatory relief through the appropriations process.
- SAFE Act amendments to allow for more mobility for mortgage lenders.
- Marchant Sub S bills: Increase from 100 to500 shareholders and allow banks organized as LLCs to be treated as a bank under Sec. 581 of the IRC allowing for tax efficiencies similar to Sub S banks.
2016 Presidential Election and the Prospects for Banking Reform