Tag Archives: Dodd-Frank Act

U.S. Congressman Jeb Hensarling (R-Texas) will speak out along with a panel of financial regulation experts on the need for financial reform at an American Enterprise Institute (AEI) Event on Tuesday, July 21 – the fifth anniversary of the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act, according to an announcement from AEI.

Section 622 of Dodd-Frank, implemented by the Board's Regulation XX, prohibits a merger between two financial companies or one financial company from acquiring another if the resulting merged company's liabilities exceed 10 percent of the aggregate financial sector liabilities.

Another key effort is the Fed's launch of the Comprehensive Liquidity Assessment and Review (CLAR) in 2012 as an annual assessment to give supervisors of financial firms a regular opportunity to respond to evolving liquidity risks. The Fed also enhanced the rules creating enhanced risk management standards for larger U.S. banks in addition to the rules in place for capital planning, liquidity risk management, and stress testing.

One of the witnesses at the hearing, Dean and Professor of Law at the University of Virginia School of Law Paul G. Mahoney, said a consequence of Dodd-Frank will be fewer and larger banks in the United States, because Dodd-Frank has layered on "costly new regulations that the large banks can afford but smaller ones cannot."

Where the effective tax rate on the banking sector is concerned, the increase of 2 percentage points in the leverage ratio of the banking sector, from 7.5 percent to 9.5 percent) in the post-crisis years of 2008 to 2014 can be transformed into an increase in the effective tax rate for the banking sector, according to Holtz-Eakin.

Hensarling noted the 11 bills passed by the Committee had bipartisan support and had previously been approved by either the Financial Services Committee or the House of Representatives during the 113th Congress. However, none of the bills came up for a vote in the Senate, which was then under Democratic control.

The Consumer Financial Protection Bureau (CFPB) announced on Tuesday it has levied a $2 million civil penalty against Maryland-based nonbank mortgage lender NewDay Financial for deceptive mortgage advertising and kickbacks.

With the Republican majority now in place, the U.S. House of Representatives voted on Wednesday to pass a bill that eased some portions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, according to multiple media reports.

The U.S. Federal Reserve Board recently issued a final rule to implement section 622 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.