Senate Passes TRIA Reauthorization Bill; Timing of House Version Unclear
On July 17, the Senate voted 93-4 to pass S. 2244, the Terrorism Risk Insurance Program Reauthorization Act of 2014. The bill reauthorizes the Terrorism Risk Insurance Act (TRIA) for seven years while making few changes to the current program. Shortly after the Senate passed S. 2244, House Financial Services Committee Chairman Jeb Hensarling (R-TX) noted the he is “still committed to getting a bill passed, but it has become very clear this week that the process is going to take several more months before there is a resolution.” The House TRIA reauthorization bill, H.R. 4871, would reauthorize TRIA for five years and phase in changes aimed at reducing the government’s role in the terrorism risk insurance market. The author of the bill, Representative Randy Neugebauer (R-TX), indicated he “will not change” the House version of the bill.
This Week’s Hearings:
- Tuesday, July 22: The Senate Banking Subcommittee on Housing, Transportation, and Community Development will hold a hearing titled “Building Economically Resilient Communities: Local and Regional Approaches.”
- Wednesday, July 23: The House Financial Services Committee will hold a hearing titled “Assessing the Impact of the Dodd-Frank Act Four Years Later.”
- Thursday, July 24: The House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises will hold a hearing titled “Oversight of the SEC’s Division of Corporation Finance.”
SEC to Hold Open Meeting on Money Market Funds
On Wednesday, July 23, the Securities and Exchange Commission (SEC) will meet in open session to consider whether to adopt amendments to certain rules under the Investment Company Act of 1940 (Act) that govern the operation of money market funds and related amendments to Form PF under the Act. The SEC will also consider whether to issue a related notice of proposed exemptive relief. Further, the SEC will consider whether to: (1) re-propose amendments to the principal rule under the Act that governs the operation of money market funds to address provisions that reference credit ratings; and (2) propose an amendment to the diversification provisions in that rule. Notably, on July 17, SEC Chair Mary Jo White indicated that “in addition to finalizing important new rules for money market funds…the Commission will soon implement critical Dodd-Frank Act rules for credit rating agencies and securitization.”
FDIC & OCC to Hold Meetings
On Wednesday, July 23, the Office of the Comptroller of the Currency (OCC) will hold a meeting of its Mutual Savings Association Advisory Committee to advise the OCC on the regulatory changes or other steps the agency may be able to take to ensure the continued health and viability of mutual savings associations. Also on July 23, the Federal Deposit Insurance Corporation (FDIC) will hold a meeting of its Advisory Committee on Community Banking to discuss current issues affecting rural small community banks. On Thursday, July 24, the OCC and FDIC will host the 2014 Joint Mutual Forum in Washington, D.C. The forum will promote the operations of mutual depository institutions and discuss industry trends, focusing specifically on interest rate risk, third party relationships, and mutual holding companies.