5/17/2010 Senate to resume voting on Reg Reform amendments today; Bankers urged to oppose Whitehouse amendment
Texas Bankers AssociationSenate Banking Committee Chairman Chris Dodd (D-Conn.) said Friday that he expects the Senate to vote tonight, Monday night, on four amendments to the financial regulatory reform bill (S. 3217).
He said those measures will include Sen. Mark Udallís (D-Colo.) amendment that would require the three major credit-reporting bureaus to provide a free credit score when a customer obtains a credit report; Sen. John Rockefellerís (D-W.Va.) amendment that would preserve the Federal Trade Commissionís rulemaking authority; Sen. Kit Bondís (R-Mo.) amendment that would make it easier for ďangel investorsĒ to provide funding to start-up companies without having funds tied up under an Securities and Exchange Commission review; and Sen. John Cornynís (R-Texas) amendment that would require the Obama administration to certify the International Monetary Fundís loan to Greece will be repaid.
Meanwhile, Senate Majority Leader Harry Reid (D-Nev.) today is likely to file a cloture motion to end debate on S. 3217. The Senate could consider the motion Wednesday and, if approved, a final vote on the legislation would occur by the end of the week. The chamber also may approve a managerís amendment to the bill containing some remaining fixes just before final passage.
Bankers are urged to oppose an amendment (No. 3746) to the financial regulatory reform bill, offered by Sen. Sheldon Whitehouse (D-R.I.), that would limit the interest rate on a consumer credit transaction to the maximum permitted by the consumerís state law.
The Whitehouse amendment, which could be considered as early as Tuesday, would allow states to cap rates on all nonmortgage consumer loans, including car loans, unsecured lines of credit (also overdraft lines), nonmortgage installment loans, student loans and small-dollar affordable loans.
Under the amendment, states could adopt a dizzying array of interest-rate caps, subjecting lenders of all sizes to significant new risks in making credit available. The measure also would force lenders to pull back from all types of lending, increase costs to consumers, and limit the convenience consumers currently enjoy in the marketplace. Please send an opposition letter to our senators today.