House Set to Roll Back Finance Rules in Rare Bipartisan Move
One expert says, “This is ultimately a narrow package of reforms." Questions remain about the Senate response to this bill.
Jeb Hensarling and Maxine Waters don’t agree on much but they’ve reached a compromise on a plan for dialing back financial rules that is poised to pass the U.S. House this week.
The legislative package, which Hensarling and Waters unveiled Monday, is largely aimed at making it easier for companies to raise money by lowering barriers to invest in startups and simplifying regulations for businesses to go public. Most of the 32 bills included make minor, incremental changes to existing rules. Others have already been adopted by federal agencies such as the Securities and Exchange Commission. House lawmakers may vote on the measure as soon as Tuesday, which would send it to the Senate.
Texas’s Hensarling, the chairman of the House Financial Services Committee, is a conservative Republican who routinely argues that regulations stifle economic growth. California’s Waters, the top Democrat on the financial services panel, is known for criticizing banks. The two often spar at hearings and rarely agree on legislation.
The package leaves out contentious changes Republicans sought like tweaking the Volcker Rule or overhauling the Consumer Financial Protection Bureau. While bipartisan support bolsters the legislation’s prospects, it still faces an uphill battle to becoming law. At least nine Democratic senators would need to support it and they may be loath to hand Republicans any legislative wins ahead of November’s midterm elections. Lawmakers are also consumed by other issues, including President Donald Trump’s recent Supreme Court nomination.
“This is ultimately a narrow package of reforms,” said Compass Point analyst Isaac Boltansky. “The question at this point is whether the Senate will consider this package or if specific provisions will have to catch a ride to passage on other legislative vehicles.”
Hensarling has said that Senate Majority Leader Mitch McConnell agreed to take up the package in exchange for support on a separate bill overhauling the Dodd-Frank Act that was approved earlier this year. Many of the measures proposed would expand upon provisions enacted as part of the 2012 Jumpstart Our Business Startups Act.
“There was a lot of really great right-wing stuff we could have thrown into the bill, but we didn’t,” Hensarling told reporters Tuesday, adding that he has been meeting with senators to generate support for the bill.