The house passed the hour 4790 amid a rare bipartisan consensus to simplify and streamline supervision of the banking sector and of implementation of the controversial Volcker rule, which forbids banks to use clients ‘ money for trading and other risky operations.
Kristian Rouz — the US house of representatives has decided to simplify rules regarding financial speculation sector, terming the Central Bank as the main authority responsible for streamlined supervision, and the use of so-called Volcker rule’.
The legislator adopted new legislation on 300-104 vote on Friday, seeking to simplify the regulation of the banking sector, which is currently managed by five separate agencies.
“If we’re going to have the Volcker rule, one of the most challenging, complex rules ever created by the human mind, why we can’t have one institution to hold all this?” The house Financial services Committee Chairman Jeb Hensarling (R-Texas) said.
This step is considered as part of an effort the trump administration to ease Obama-era regulations that contribute to a more reliable Bank lending and financial sector under the control of one Agency, which is considered as more effective and flexible.
“Regardless of how you stand on a specific rule or regulation, then, at least, should be clear and there should be one interpretation and one enforcer rule,” Rep. Hensarling said.
The Volcker rule — named after former fed Chairman Paul Volcker is part of the controversial Dodd-Frank, passed in 2010, which sought to increase state control over operations in the open market.
HR 4790, the bill authorizes the fed as the sole administrator of the Volcker rule; it was proposed by Rep. French hill (R-AR), and received the support of 78 democratic representatives who joined the Republican party majority to accept the offer.
The passage of the bill in the face of broad bipartisan support, although Democrats strongly opposing the trump urged the Administration to remove or change a state of emergency in place in the aftermath of the great recession. It can offer a wider reform of financial sector supervision may have a solid chance of passing in the near future as well.
Meanwhile, Rep. Hensarling is known for his offer to call and replace the entire Dodd-Frank, with its own act of choice aimed at improving the financial sustainability of the sector by the commercial banks responsible for their own sustainability and capitalization. The law also eliminates the unpopular government subsidies, the so-called ‘too big to fail’ (TBTF) banks.
Obama-the era of salvation was seen as reflecting the alleged nepotism and collusion between the White house and top banks, wall street, and many Republican lawmakers have long been trying to ban the use of taxpayer money as a “safety cushion” for the TBTF banks.
Quite ironically, wall Street has called for softening the Volcker rule for many years, as many bankers feel the costs associated with compliance with the rules are too high. This, despite the fact that Dodd-Frank will ultimately help them in case of an emergency.
However, almost ten years after the crisis, banks are now looking for riskier and more profitable investments, while a wall Street does not believe in the mass financial crisis is an opportunity in the current economic climate.
The Volcker rule prohibits banks to use clients ‘ money for risky financial operations sector, and is similar in spirit to rules introduced D. the administration of Franklin Roosevelt in the mid 1930-ies. However, the rule is considered by bankers as unnecessary as they are eyeing more profit in the soaring stock market amid a major overhaul of the President trump the entire U.S. economy.
Critics of the Volcker rule, he was called to a more conservative management strategy the Bank’s money, by reducing the liquidity available for investment in financial assets and financial markets in General.
H 4790 now goes to the Senate where it can receive additional deregulation measures attached to it, depending on the bipartisan consensus in the Senate’s narrow GOP majority will be able to provide their democratic colleagues.
Meanwhile, the Vice-Chairman of the fed Randy Quarles — who is in charge of oversight on wall Street, said the Central Bank is preparing for a major modernisation of regulation of the financial sector to facilitate rapid business and economic activity.
In addition, the Minister of Finance Steven Mnuchin said that his Agency seeks to exempt small banks from regulations in order to increase their lending and trade, while the stricter control and supervision over systemically important banks TBTF.
Sourse: sputniknews.com
