The Senate on Wednesday passed a bill sponsored by Sen. Mike Crapo that would roll back some of the regulations put in place by the Dodd-Frank Act following the 2008 financial crisis.  The Economic Growth, Regulatory Relief and Consumer Protection Act, which was passed in a 67-31 bipartisan vote, would provide notable regulatory relief to regional banks by raising the threshold by which bank holding companies are presumptively subject to enhanced prudential standards under Dodd-Frank from $50 billion to $250 billion in total consolidated assets.  The bill also includes provisions to lessen the regulatory burden on community banks, such as tailoring mortgage regulations and creating an exemption to the Volcker Rule for small banks, and would add some new consumer protection measures, including an expansion of access to free credit freezes following a data breach.  The legislation will now move to the House, where Rep. Jeb Hensarling, chairman of the House Financial Services Committee, has indicated a desire to add around 30 measures to the Senate bill, and resolve any differences with the Senate bill through negotiations in the reconciliation process (external link).

Photo of Mike Nonaka Mike Nonaka

Michael Nonaka is a partner in the firm’s Financial Institutions practice group. He represents banks and other financial institutions on a wide variety of bank regulatory, enforcement, legislative and policy issues.  Mr. Nonaka also is co-chair of the firm’s Fintech Initiative and works…

Michael Nonaka is a partner in the firm’s Financial Institutions practice group. He represents banks and other financial institutions on a wide variety of bank regulatory, enforcement, legislative and policy issues.  Mr. Nonaka also is co-chair of the firm’s Fintech Initiative and works with a number of banks, lending companies, money transmitters, payments firms, technology companies, and service providers on innovative technologies such as big data, blockchain and related technologies, bitcoin and other virtual currencies, same day payments, and online lending.