Vote Smart's Synopsis:

Vote to pass a bill that repeals and reduces financial regulations from the Dodd-Frank Wall Street Reform and Consumer Protection Act, and establishes new regulations for financial institutions and government agencies.

Highlights:

• Repeals a provision known as the “Volcker Rule” from the Dodd-Frank Wall Street Reform and Consumer Protection Act, which prohibits a banking entity from (Sec. 901):

• Engaging in proprietary trading; or

• Sponsoring or acquiring or retaining any equity, partnership, or other ownership interest in a hedge fund or a private equity fund.

• Repeals a provision from the Dodd-Frank Wall Street Reform and Consumer Protection Act requiring the Board of Governors to prescribe capital adequacy and other risk management standards for supervised securities holding companies (Sec. 901).

• Reestablishes the Consumer Financial Protection Board as the Consumer Law Enforcement Agency (Sec. 711).

• Repeals the Bureau of Consumer Financial Protection Fund (Sec. 713).

• Authorizes all funds appropriated to the Consumer Law Enforcement Agency to be reviewed by the congressional Committees on Appropriations (Sec. 713).

• Establishes the position of Inspector General of the Consumer Law Enforcement Agency (Sec. 714).

• Requires the Inspector General of the Consumer Law Enforcement Agency to appear, upon invitation, at semi-annual hearings before the Senate Committee on Banking, Housing, and Urban Affairs and the House of Representatives Committee on Financial Services (Sec. 714).

• Repeals the Consumer Law Enforcement Agency’s authority to monitor for risks to consumers in the offering or provision of  consumer financial products or services, including developments in markets for such products or services (Sec. 724).

• Repeals the Consumer Law Enforcement Agency’s supervisory authority over financial institutions (Sec. 727).

• Reduces the Consumer Law Enforcement Agency’s authority to implement laws or take action  to prevent a covered person or service provider from committing or engaging in an unfair, deceptive, or abusive act or practice (Sec. 736).

• Repeals the Department of Labor fiduciary rule (Sec. 841).

• Repeals the Financial Stability Oversight Council’s authority to designate non-bank financial institutions and market utilities as “systemically important” (Sec. 151).

• Repeals the orderly liquidation authority, which authorizes the liquidation of failing financial companies that pose a significant risk to the financial stability of the United States (Sec. 111).

• Prohibits covered financial corporations from being debtors in cases of liquidation (Sec. 121).

• Defines a “covered financial corporation” as any corporation incorporated or organized under any federal or state law, other than a stockbroker, a commodity broker, a bank holding company, or a parent company that meets certain qualifications (Sec. 121).

• Establishes new regulations for financial institution bankruptcy (Secs. 121-123).

• Authorizes the court, upon the request of a trustee and after notice and a hearing occurring no later than 24 hours after the order for relief, to order the transfer of property of the estate and assignment of executory contracts, unexpired leases, and qualified financial contracts of a debtor to a bridge company (Sec. 122).

• Defines a “bridge company” as a newly formed corporation to which property of an estate may be transferred (Sec. 122).

Full Bill Text

Full Bill Text