Hill Supports Rolling Back Dodd-Frank Flaw

Washington, December 19, 2017
Congressman French Hill (AR-02) issued the following statement after supporting H.R. 3312, the Systemic Risk Designation Improvement Act of 2017:

“I am pleased to support this measure to remove one more Dodd-Frank creation that has penalized and burdened our banks through a completely arbitrary asset threshold of $50 billion to designate firms as ‘systemically important financial institutions.’ This provision was created by plucking a number out of thin air – without regard to the actual business of the institution – and in doing so, it gave them a government stamp of ‘too big to fail.’ I thank my good friend, Chairman Blaine Luetkemeyer, designing this flawed Dodd-Frank requirement and I look forward to the Senate considering this thoughtful approach to reform.”

Click HERE to watch Rep. Hill’s speech in support of H.R. 3312

Background:

H.R. 3312 will do the following:

  • Removes arbitrary thresholds posed by the Dodd-Frank Act to create more flexible and efficient regulation of financial institutions.
  • Removes the $50 billion asset threshold used to automatically designate certain financial institutions as SIFIs.
  • Replaces the arbitrary asset site with enhanced regulatory standards for these financial institutions based upon the specific nature and risk of their activities rather than an arbitrary asset threshold.
  • Authorizes the Financial Stability Oversight Council to subject bank holding companies to enhanced supervision and prudential standards by the Federal Reserve if the institution has been identified as a global systemically important bank (G-SIB).
  • Substitutes G-SIB status in place of the current monetary threshold as the determinant for the Federal Reserve’s heightened authority over certain bank holding company actions.

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