The House of Representatives is scheduled to consider the Systemic Risk Designation Improvement Act of 2016 (H.R. 6392). Sponsored by Rep. Blaine Luetkemeyer, the legislation is designed to create regulation of financial institutions on risk rather than on arbitrary asset size. Dodd-Frank has placed a crushing burden on community banks that is not sustainable. Each year, hundreds of small banks merge or are acquired as they struggle to survive.
House Financial Services Committee Chairman Jeb Hensarling stated;
“Dodd-Frank increases the power and control that largely unaccountable Washington bureaucrats have over our economy. The results have left hardworking taxpayers with fewer choices, higher costs and an anemic economy of shrinking paychecks. This bill will provide much-needed relief to community financial institutions that are being crushed by Washington’s one-size-fits-all regulatory approach by allowing America’s small hometown banks and credit unions to focus their time and resources on their customers rather than the dictates of Washington bureaucrats.”