This story appeared in Bank Digest.
The House of Representatives has passed the Systemic Risk Designation Improvement Act (H.R. 6392), which is intended to better gauge and more accurately reflect the potential risks that financial institutions could pose to the economy. It would remove a threshold included in the Dodd-Frank Act under which a financial instruction is automatically designated as a systemically important financial institution if it has at least $50 billion in assets and would replace it with an evaluative process that takes into account factors other than size, including complexity and interconnectedness. The House voted to approve the bill by a vote of 254-161.
House Majority Leader Kevin McCarthy (R-Calif) said the threshold "is a prime example of the arbitrariness" of the Dodd-Frank Act and that the bill "fixes one of the many overreaching errors in Dodd-Frank so we can actually protect the American people from future financial crises."
In contrast, House Financial Services Committee Ranking Member Maxine Waters (D-Calif) called the bill "the first step in the Trump agenda to deregulate Wall Street, despite candidate Trump's pledges to hold elite bankers accountable."