Economic Growth, Regulatory Relief, and Consumer Protection Act
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| Long title | To promote economic growth, provide tailored regulatory relief, and enhance consumer protections, and for other purposes. |
|---|---|
| Enacted by | the 115th United States Congress |
| Effective | May 24, 2018 |
| Citations | |
| Public law | Pub. L. 115–174 (text) (PDF) |
| Codification | |
| Acts amended | Commodity Exchange Act Consumer Credit Protection Act Federal Deposit Insurance Act Federal Deposit Insurance Corporation Improvement Act of 1991 Federal Reserve Act Financial Institutions Reform, Recovery, and Enforcement Act of 1989 International Banking Act of 1978 Protecting Tenants at Foreclosure Act Revised Statutes of the United States Securities Exchange Act of 1934 Truth in Lending Act Dodd–Frank Wall Street Reform and Consumer Protection Act |
| Titles amended | 12 U.S.C.: Banks and Banking 15 U.S.C.: Commerce and Trade |
| Legislative history | |
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The Economic Growth, Regulatory Relief, and Consumer Protection Act (abbreviated EGRRCPA; Pub. L. 115–174 (text) (PDF), S. 2155) was signed into law by President Donald Trump on May 24, 2018.[1][2][3][4] The bill eased financial regulations imposed by the Dodd–Frank Wall Street Reform and Consumer Protection Act after the financial crisis of 2007–2008.
Specifically, the bill raised the threshold from $50 billion to $250 billion under which banks are deemed too big to fail.[5] The bill also eliminated the Volcker Rule for small banks with less than $10 billion in assets.[6]
The Act was the most significant change to U.S. banking regulations since Dodd–Frank.[5][7][8] Barney Frank, leading co-sponsor of the Dodd-Frank Act, said parts of the original law were a mistake and supported the legislation.[9][10][11][12]
Legislative history
[edit]In the House, the bill passed by a 258-159 vote with support from all but one Republican (the exception being Walter B. Jones Jr.) and 33 out of 193 Democrats. In the Senate, the bill passed by a 67-31 vote with support from all Republicans and 17 out of 47 Democrats. Within the Democratic caucuses, progressives strongly opposed the bill.[13][14]
Aftermath
[edit]In the wake of the 2023 banking crisis, some banking experts said that Silicon Valley Bank and Signature Bank would have managed its risks better had Dodd-Frank "not been rolled back under President Trump," however other experts have disputed this assertion as Silicon Valley Bank was still required to undergo periodic stress testing under the Act.[15]
SVB’s CEO Greg Becker supported the rollback and explicitly lobbied for its passage, due to the reduced frequency and number of scenarios required for stress testing implemented under the Dodd–Frank Wall Street Reform and Consumer Protection Act for banks with under $250 billion in assets.[16][17] The Federal Reserve Bank of San Francisco did have discretion to annually examine any bank with $100 billion in assets.[18]
References
[edit]- ^ Werner, Erica (May 24, 2018). "Trump signs law rolling back post-financial crisis banking rules". The Washington Post.
- ^ Tracy, Ryan; Ackerman, Andrew (May 24, 2018). "Trump Signs Banking Bill, Adding to Regulators' To-Do List". The Wall Street Journal.
- ^ Balluck, Kyle (May 24, 2018). "Trump signs Dodd-Frank rollback". The Hill.
- ^ Schroeder, Pete (May 24, 2018). "Trump signs bill easing U.S. bank rules into law". Reuters.
- ^ a b Pramuk, Jacob (May 24, 2018). "Trump signs the biggest rollback of bank rules since the financial crisis". CNBC.
- ^ Michel, Norbert "Crapo Bill Helps Smaller Banks, Highlights Problems with Bank Holding Companies"Forbes March 13, 2018. Retrieved March 14, 2019.
- ^ Dexheimer, Elizabeth (May 24, 2018). "Trump Signs Biggest Rollback of Bank Rules Since Dodd-Frank Act". Bloomberg. Retrieved April 27, 2020.
- ^ Lawler, Joseph (May 24, 2018). "Trump signs biggest change to Dodd-Frank since its enactment". Washington Examiner.
- ^ "Barney Frank admits 'mistake' in Dodd-Frank". The Hill. November 20, 2016. Retrieved March 14, 2023.
- ^ "A lot of people heard what Barney Frank said about the new banking law. Few knew he works for a bank". Washington Post. ISSN 0190-8286. Retrieved March 14, 2023.
- ^ Enrich, David (March 13, 2023). "Back-to-Back Bank Collapses Came After Deregulatory Push". The New York Times. ISSN 0362-4331. Retrieved March 14, 2023.
- ^ Bykowicz, Julie (March 13, 2023). "Barney Frank Pushed to Ease Financial Regulations After Joining Signature Bank Board". Wall Street Journal. Retrieved March 14, 2023.
- ^ Lane, Sylvan (March 6, 2018). "Democrats clash on Dodd-Frank rollback bill". The Hill.
- ^ Lane, Sylvan (March 14, 2018). "Senate passes bipartisan bill to roll back Dodd-Frank". The Hill.
- ^ "S.2155 - Economic Growth, Regulatory Relief, and Consumer Protection Act". Congress.gov. 115th Congress of the United States. Retrieved March 13, 2023.
- ^ Flitter, Emily; Copeland, Rob (March 10, 2023). "Silicon Valley Bank Fails After Run on Deposits". The New York Times. ISSN 0362-4331.
- ^ "SVB's Lobby Groups Fought Proposal To Bolster Deposit Insurance". The Lever. March 12, 2023. Retrieved March 14, 2023.
- ^ Weisman, Jonathan; Thompson, Stuart A. (March 14, 2023). "The Political Finger-Pointing Behind Bank Collapses and Train Derailments". The New York Times. Archived from the original on March 14, 2023. Retrieved March 15, 2023.