The House is poised to vote this week on a measure that would revise the designation process for “systemically important” bank holding companies under the Dodd-Frank financial law, MorningConsult.com reported yesterday. H.R. 6392, sponsored by Rep. Blaine Luetkemeyer (R-Mo.), chairman of the House Financial Services Subcommittee on Housing and Insurance, would base the systemically important designation on factors other than just asset size, which is currently the sole criterion. The House Rules Committee is scheduled to consider the measure tonight, signaling a floor vote as early as tomorrow. It is not clear whether the Senate will take up the legislation, if the House passes it, before the 114th Congress adjourns. House passage would represent one bipartisan prong of the GOP’s attempted Dodd-Frank rollbacks. The proposed standards in Luetkemeyer’s bill — size, interconnectedness, “extent of readily available substitutes or financial institution infrastructure,” global activity and complexity — are based on criteria established by the Basel Committee on Banking Supervision. Republicans have called the measure a nuanced antidote to what they see as Dodd-Frank’s overly broad approach.
