Media organizations have obtained a leaked memo originating from Representative Jeb Hensarling, Chairman of the House Financial Services Committee, that outlines planned changes to the version of the CHOICE Act introduced in the last Congress. According to the memo, which we read as commenting upon an interim nonpublic draft
Continue Reading Leaked Hensarling Memo Outlines Proposed Changes to the CFPB

A newly leaked memo outlines the changes to be made in the next version of Rep. Jeb Hensarling’s CHOICE Act, including changes to the core regulatory off-ramp provision and to stress testing and capital planning requirements. The February 6 memo from Rep. Hensarling to the House Financial Services Committee leadership,
Continue Reading Leaked HFSC Memo Reveals Various Capital-Related Changes Expected in CHOICE Act 2.0

House Speaker Paul Ryan’s A Better Way policy agenda states that “it is time for serious and fundamental reform” of how regulations are made. The House of Representatives is considering a number of bills that would transform the processes by which agencies—particularly the federal financial regulatory agencies—promulgate regulations. The following
Continue Reading Comparison of Legislation in the 115th Congress Affecting the Rulemaking Process

Last week, the House of Representatives passed three bills containing provisions that would require certain of the financial regulatory agencies to conduct cost-benefit analysis as part of the rulemaking process: the Regulatory Accountability Act of 2017 (H.R. 5), the SEC Regulatory Accountability Act (H.R. 78), and the Commodity End-User Relief
Continue Reading Comparison of Cost-Benefit Analysis Legislation

In a recent American Banker article the chief executive of the Louisiana Bankers Association, Richard Taylor, argues persuasively the perspective of small and community banks, writing that financial regulatory reform should go beyond Dodd-Frank relief. He writes that besides Dodd-Frank there are “a host of onerous regulations and accounting standards
Continue Reading Louisiana Bankers Association Chief Executive: Regulatory Relief Shouldn’t Be Limited to Dodd-Frank

With President-elect Donald Trump’s transition underway, speculation has been rife as to the impact of his Administration and a Republican-controlled Congress on a variety of issues, including executive compensation.  While one might assume that all of the recent executive compensation rules mandated by the Dodd-Frank Act, such as the pay
Continue Reading Predictions on Possible Changes to and Timing of the Dodd-Frank Executive Compensation Provisions

An important, but sometimes misunderstood, SEC procedural requirement is the SEC’s quorum rule, which establishes the minimum number of Commissioners required for a Commission rulemaking.

Currently, only three of the five SEC Commissioner seats are filled. President Obama’s nominees for the two remaining slots, Hester Peirce and Lisa Fairfax,
Continue Reading Understanding the SEC’s Quorum Rule

Earlier today, the Consumer Bankers Association, the Credit Union National Association, the Independent Community Bankers of America and the National Association of Federal Credit Unions sent a letter to Senate Majority Leader Mitch McConnell and Senate Minority Leader-elect Chuck Schumer recommending changes related to the CFPB. In the letter, the
Continue Reading Financial Trade Groups Recommend Changes to CFPB

President-Elect Trump’s transition website promises to “dismantle the Dodd-Frank Act and replace it with new policies to encourage economic growth and job creation.”  To help our clients keep up with the reorientation of the financial regulatory framework, Davis Polk is launching a new blog,

Our most recent entry
Continue Reading Trump Transition: Financial CHOICE Act – Only the Beginning

This blog post sets out how rollback of the Dodd-Frank Act or its implementing regulations might work. President Elect Trump’s administration and the new Republican majority in Congress could amend the relevant statutes or amend, repeal or block current regulations. Most of the methods are neither simple nor quick. Repealing
Continue Reading How Regulatory Rollback Works