Congresswoman Mia B. Love [R-UT-04] has introduced H.R. 4049, the Volcker Rule Relief Act of 2015.
This bill makes a technical clarification to the so-called “Volcker Rule” of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The intent of that Rule is to prevent banks from using federally insured deposits to engage in high risk trades – activity that is primarily limited to the largest banking institutions in the country. This legislation would exempt small banks, under $10 billion in assets, as well as certain nonfinancial companies, from the Volcker Rule.
“While few disagree with the intent of the Volcker Rule, the unintended consequences of the law include putting taxpayers at more risk, not less,” explains Howard M. Headlee, President & CEO of the Utah Bankers Association. “Those consequences are a heavy burden on traditional banks, and in other cases threaten the flow of capital into the banking industry. We can fix this without diluting what Volcker was designed to do,” Headlee said.
“Some federal rules are strangling the important endeavors of these lending institutions, which Congresswoman Love’s legislation remedies,” Louise P. Kelly, President and CEO of Enerbank USA of Salt Lake City, explains.
Kelly says the law’s unintended consequences negatively impact consumers and small businesses alike: “State-chartered banks are the bulwark of the American economy by providing loans to small businesses and families.”
Kelly added: “Furthermore, every charitable and nonprofit organization should be grateful to the Congresswoman. Banks contribute so much to our community with their Community Reinvestment Act (CRA) donations that support critical programs in housing, education, indigent care, and others.”
“Congresswoman Love understands this and her efforts will make a difference for all Utahns,” Kelly said.
Congresswoman Love said: “This legislation supports the diversity of our banking institutions – both community banks and industrial banks — that have been a source of strength for Utah’s economy.”