HFSC Approves Rep Grimm ‘s (R-NY) HR 3128 Amendment to the Dodd-Frank Act
At a House Financial Services Committee markup on May 31, lawmakers approved of Rep. Michael Grimm’s (R-N.Y.) H.R. 3128 amendment to the Dodd-Frank Act to adjust the date on which consolidated assets are determined for purposes of exempting certain instruments of smaller institutions from capital deductions. The amendment was approved by a bipartisan vote of 35-15
Some committee members discussed recent reports regarding the bill’s effect on Emigrant Savings Bank, which would save roughly $300 million in Tier-1 capital if the bill is approved since the legislation adds March 31, 2010 as an alternate cutoff date, on top of the original cutoff date of December 31, 2009.
Sen. Susan Collins’ (R-Maine) amendment to the Dodd-Frank Act eliminated trust-preferred securities as an element of Tier 1 capital at institutions with more than $15 billion in assets.
Since Emigrant Bank was beyond the $15 billion asset level threshold as of December 31, 2009, the Dodd-Frank Act would have forced it to shed assets. Including the March 31, 2010 alternate date in the bill spares Emigrant from having to liquidate its assets as the total value of its assets around March 31 was less than the $15 billion threshold.
During the markup, Grimm said the Dec. 31, 2009 cutoff date “would have a very, very detrimental impact on my constituents who rely on the bank. It was an act of prudence on the part of Emigrant Bank that caused them to be captured,” by the Collins Amendment.
The second bill marked up by the full committee was H.R. 1588, the Consumer Rental Purchase Agreement Act, sponsored by Rep. Francisco Canseco (R-Texas). The bill passed despite opposition from Democratic members who argued the bill superseded state regulation, particularly in New Jersey, Vermont, Minnesota, and Wisconsin. The bill was reported favorably to the House by a 33-21 vote.
For more information on the markup, please click here.
For more on Emigrant Bank, see Chief Regulatory Officer of Emigrant Bank Richard Wald’s testimony.
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At a House Financial Services Committee markup on May 31, lawmakers approved of Rep. Michael Grimm’s (R-N.Y.) H.R. 3128 amendment to the Dodd-Frank Act to adjust the date on which consolidated assets are determined for purposes of exempting certain instruments of smaller institutions from capital deductions. The amendment was approved by a bipartisan vote of 35-15
Some committee members discussed recent reports regarding the bill’s effect on Emigrant Savings Bank, which would save roughly $300 million in Tier-1 capital if the bill is approved since the legislation adds March 31, 2010 as an alternate cutoff date, on top of the original cutoff date of December 31, 2009.
Sen. Susan Collins’ (R-Maine) amendment to the Dodd-Frank Act eliminated trust-preferred securities as an element of Tier 1 capital at institutions with more than $15 billion in assets.
Since Emigrant Bank was beyond the $15 billion asset level threshold as of December 31, 2009, the Dodd-Frank Act would have forced it to shed assets. Including the March 31, 2010 alternate date in the bill spares Emigrant from having to liquidate its assets as the total value of its assets around March 31 was less than the $15 billion threshold.
During the markup, Grimm said the Dec. 31, 2009 cutoff date “would have a very, very detrimental impact on my constituents who rely on the bank. It was an act of prudence on the part of Emigrant Bank that caused them to be captured,” by the Collins Amendment.
The second bill marked up by the full committee was H.R. 1588, the Consumer Rental Purchase Agreement Act, sponsored by Rep. Francisco Canseco (R-Texas). The bill passed despite opposition from Democratic members who argued the bill superseded state regulation, particularly in New Jersey, Vermont, Minnesota, and Wisconsin. The bill was reported favorably to the House by a 33-21 vote.
For more information on the markup, please click here.
For more on Emigrant Bank, see Chief Regulatory Officer of Emigrant Bank Richard Wald’s testimony.