This story appeared in Bank Digest.
The House of Representatives has passed the Financial Institution Customer Protection Act of 2017 (H.R. 2706), sponsored by Rep. Blaine Luetkemeyer (R-Mo), and the Investor Clarity and Bank Parity Act (H.R. 3093), which was sponsored by Rep. Mike Capuano (D-Mass). H.R. 2706, which passed by a vote of 395 to 2, requires federal banking agencies to provide banks or credit unions written justification of any request to terminate or restrict a customer’s account, except in instances of national security, according to a House Financial Services Committee press release. The bill was introduced in response to a former Justice Department and Federal Deposit Insurance Corporation initiative called “Operation Choke Point.”
H.R. 3093, which passed the House by voice vote, amends the Dodd-Frank Act’s Volcker rule so that a hedge fund or private equity fund could share a name with a bank-affiliated investment adviser that manages the fund.