Legislative Activity

Senate Banking Committee Postpones Markup of GSE Reform Bill

On Tuesday, April 29, the Senate Banking Committee announced that it was postponing the markup of legislation to reform the government-sponsored enterprises (GSEs), the “Housing Finance Reform and Taxpayer Protection Act of 2013” (S. 1217). According to Chairman Tim Johnson (D-SD), “[w]hile we have the votes to report the bill out today, members of the Committee have asked for a brief delay to try to work out additional issues prior to a final vote.” While timing of the markup remains in flux, Committee leadership is continuing its efforts to shore up support for the bill among Committee Members.

House Passes Bill Providing CLO Fix to the Volcker Rule

On Tuesday, April 29, the House of Representatives passed a bill (H.R. 4167) that would allow banks to hold certain collateralized debt obligations (CLOs), which are currently prohibited under the Volcker Rule’s ban on proprietary trading. The bill will now be sent to the Senate, which has taken less of an interest in providing fixes to the Volcker Rule.

House Financial Services Committee to Markup Bills on Capital Formation, Mortgage Issues, Among Others

On Wednesday, May 7, the House Financial Services Committee will markup a series of measures. Included in the markup are three bills that were discussed in a Committee hearing on May 1, which provided an overview of legislative proposals to enhance capital formation for small and emerging growth companies. These proposals include: (1) H.R. _____, the Equity Crowdfunding Improvement Act of 2014; (2) H.R. _____, the Startup Capital Modernization Act of 2014; and (3) H.R. ____, To direct the Securities and Exchange Commission to revise its proposed amendments to Regulation D, Form D, and Rule 156. The markup will also consider various proposals dealing with miscellaneous issues such as the Consumer Financial Protection Bureau’s (CFPB) Qualified Mortgage (QM) rules. 

This Week’s Hearings:

  • Wednesday, May 7: The Joint Economic Committee will hold a hearing titled, “The Economic Outlook.”
  • Wednesday, May 7: The House Financial Services Committee will hold a markup of various measures and matters.
  • Wednesday, May 7: The Senate Banking Subcommittee on Economic Policy will hold a hearing titled, “Drivers of Job Creation.”
  • Thursday, May 8: The House Financial Services Committee will hold a hearing titled, “The Annual Testimony of the Secretary of the Treasury on the State of the International Financial System.”
  • Thursday, May 8: The Senate Budget Committee will hold a hearing titled, “The U.S. Economic and Fiscal Outlook.

Regulatory Activity

FSOC to Adopt New Annual Report

On Wednesday, May 7, the Financial Stability Oversight Council (FSOC) will meet in open session to discuss and analyze emerging market developments and financial regulatory issues. FSOC is scheduled to adopt its new annual report, a document that will include analyses of threats to economic stability, market developments, and related issues.