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President Trump Signs the First Major Financial Services Deregulation Law in a Decade

Jones Day

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USA June 8 2018

WHITE PAPER

June 2018

President Trump Signs First Major Financial

Services Deregulation Law in a Decade

President Trump has signed into law the Economic Growth, Regulatory Relief, and

Consumer Protection Act (“Act”), with the principal goals of promoting U.S. economic

growth, recalibrating burdensome rules, and strengthening consumer protections.

 

The Act amends an array of banking, capital formation and consumer protection standards.

 While the Act revises

several

key

provisions

of the Dodd-Frank

Wall

Street

Reform

 

and

Consumer

Protection

Act,

the

basic

structure

of

the

Dodd-Frank

Act

remains

in

place.

 

 

 

 

The

Act relieves

regulatory

burden

by

raising

the primary

asset

threshold

for

application

 

of

enhanced prudential

standards

from

$50 billion

to $250

billion

in total consolidated

 

assets

so

that fewer

companies

are

subject

to these

standards.

 

This Jones Day White Paper explains the most significant provisions of the Act and provides

an overview

of its potential

import

for

the financial services

industry.

TABLE OF CONTENTS

EXECUTIVE SUMMARY ........................................................................1

OVERVIEW OF PRINCIPAL PROVISIONS OF THE ECONOMIC GROWTH,

REGULATORY RELIEF, AND CONSUMER PROTECTION ACT .......................................1

 Title I—Improving Consumer Access to Mortgage Credit ......................................1

 Title II—Regulatory Relief and Protecting Consumer Access to Credit .........................2

 Representative Amendments that Apply Regardless of Asset Size . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

 Representative Amendments that Apply to Smaller BHCs and Community Banks . . . . . . . . . . . . . . .2

 Title III—Service Members Civil Relief Act ...................................................3

 Title IV—Tailoring Regulations for Certain Bank Holding Companies ...........................3

 Title V—Encouraging Capital Formation  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

 Title VI—Protections for Student Borrowers..................................................5

POTENTIAL IMPACTS ON THE FINANCIAL SERVICES INDUSTRY ..................................5

ENDNOTES..................................................................................6

LAWYER CONTACTS .........................................................................6

ii

Jones Day White Paper

EXECUTIVE SUMMARY

Dodd-Frank Act, amending capital calculations, qualified residential

mortgage

designations,

application

of

the

Volcker

Rule,

 

and

examination

schedules,

among other relief

measures.

On May 24, 2018, President Trump signed into law the

Economic Growth, Regulatory Relief, and Consumer Protection

Act (“Act”)

 recalibrating several significant banking, consumer

finance, and securities measures enacted in the Dodd-Frank

Wall Street Reform and Consumer Protection Act (“Dodd-Frank

Act”).

1

2

 The Act passed both chambers of the U.S. Congress on

bipartisan votes.

3

 

The Act also contains an array of banking, capital formation,

and consumer

protection

provisions

that apply

to financial

institutions

regardless

of

asset

size.

Additionally,

the

Act

 

subjects

consumer

reporting

agencies to new requirements

 

regarding

fraud

alerts.

The Act leaves intact the basic structure of the Dodd-Frank

Act while providing tailored regulatory relief from some of

the most burdensome provisions, with the primary goals of

promoting U.S. economic growth and expanding consumer

access to credit. The targeted scope of the Act is the result 

Most of the Act became effective upon enactment, but some

provisions will require agency action to implement fully and

others will take effect according to their terms at later dates. 

This White Paper provides an overview of the principal provi-

of an agreement in principle under which the Senate report-

sions of each title of the Act and concludes with observations 

edly would consider a broader package of regulatory relief

legislation offered by the House of Representatives at a later

date. Accordingly, it is possible that additional regulatory relief

legislation will be considered going forward. 

on the potential impacts the Act may have on the financial

services industry. 

OVERVIEW OF PRINCIPAL PROVISIONS OF THE

ECONOMIC GROWTH, REGULATORY RELIEF, AND

CONSUMER PROTECTION ACT

A centerpiece of the Act is raising the asset thresholds at

which U.S. bank holding companies (“BHCs”) are subject to

the enhanced prudential standards set forth in the DoddFrank

Act and rules

adopted by

the Board

of Governors

of

 

the

Federal

Reserve

System

(“Federal

Reserve

Board”).

Title I—Improving Consumer Access to Mortgage Credit

 The

Act raises the threshold for application of enhanced prudential

standards

to BHCs from

$50 billion

to $250

billion

in total

 

consolidated

assets

while

granting

the Federal

Reserve

Board

 

authority

to require

enhanced prudential

standards

for

any

 

BHCs

with

total

consolidated

assets

between

$100

billion

to

 

$250

billion

to prevent

or mitigate risks

to U.S.

financial stability

 

or

to promote

safety

and soundness.

4

In an effort to expand consumer access to mortgage credit, Title

I of the Act amends a series of mortgage-related provisions of

the Dodd-Frank Act. Some of the mortgage-related amendments

in the Act apply to any mortgage lender. For example, the Act

amends the Truth in Lending Act to eliminate the three-businessday

waiting

period

between

the

date

of

mortgage

disclosures

 

and

the date of mortgage

closing in circumstances

where

a

 

creditor

extends

to a borrower

a second

offer

of credit

that would

 

lower

the annual

percentage

rate

of the mortgage.

(Act,

§ 109).

Foreign banking organizations (“FBOs”) with more than $100

billion in global total consolidated assets remain subject to

all applicable enhanced prudential standards, including the

requirement for an intermediate holding company. FBOs with

less than $100 billion in global total consolidated assets may

no longer be subject to several U.S. enhanced prudential

standards such as those for filing resolution plans, conducting

liquidity stress testing, and adhering to a single counterparty

credit limit. 

Most of the mortgage-related amendments apply in ways

that predominantly impact mortgages that are originated and

retained by community banks and credit unions. A few representative

provisions

are

described

below.

Qualified Mortgages. The Act designates residential mortgages

that are

originated

and held in portfolio

by

banks

and

 

credit

unions with less than $10 billion

in assets

as “qualified

 

mortgages”

eligible

for

safe

harbor protection

against lawsuits.

Residential

mortgage

loans

with negative

amortization

 

or

interest-only

features,

loans

that do not comply with certain

The Act provides regional banks and community banks with

a wide array of exemptions from many requirements of the 

1

Jones Day White Paper

prepayment penalty limitations, and loans with points and fees

greater than 3 percent of the loan are not qualified mortgages.

(Act, § 101). 

Rural Appraisals. The Act exempts federally related mortgages

under $400,000 from real estate appraisal requirements if the

property is located in a rural area and the insured depository

institutions and insured credit unions has contacted at least

three appraisers who were unable to complete an appraisal

in a reasonable time frame. Loans that are originated in reliance

on this exemption

may be sold

or transferred

only under

limited

conditions

such

as failure

or sale to another regulated

 

portfolio

lender.

(Act,

§ 103).

Reducing Identity Fraud. To reduce the prevalence of “synthetic

identity

fraud

which disproportionately

affects

vulnerable

populations,”

the Act requires

the Commissioner

of the

 

Social

Security

Administration

(“Commissioner”)

to maintain

a

database

consisting of the names, Social

Security

numbers,

 

and

dates

of

birth

of

individuals.

The

database

may

be

used,

 

with

the consent

of the individual,

by

financial institutions and

their

service

providers,

subcontractors,

agents,

and assignees

to

verify

identity

electronically

in

extending

credit

and

other

 

situations

in which a consumer

reporting

agency

is permitted

by

the Fair

Credit

Reporting

Act to furnish a consumer

 

report.

The

Commissioner

may

conduct

audits

and

monitoring

 

to

deter fraud

and misuse

by

entities

that are

permitted

to use

 

the

database.

(Act,

§ 215).

Home Mortgage Disclosure Act (“HMDA”) Disclosures. The Act 

rolls back HMDA reporting requirements for insured deposi-

Treasury Report on Risks of Cyber Threats. Within one year 

tory institutions and insured credit unions that originate fewer

than 500 closed-end mortgage loans or fewer than 500 openend

lines

of credit

in each of the two

prior years,

provided

the

originator

does not have

a “needs to improve”

rating

under the

 

Community

Reinvestment

Act for

the prior two

most recent

 

examinations.

(Act,

§ 104).

from the date of enactment of the Act, the Secretary of the

Treasury must submit a report to the Senate Committee on

Banking, Housing, and Urban Affairs and the House Committee

on Financial Services on material risks of cyber threats to

financial institutions and the U.S. capital markets, and how the

federal banking agencies and the Securities and Exchange

Commission (“SEC”) are assessing and coordinating those

risks. (Act, § 216).

Title II—Regulatory Relief and Protecting Consumer

Access to Credit

Title II of the Act simplifies and streamlines provisions of the

Dodd-Frank Act and the provisions of other laws and rules that

apply to financial institutions regardless of asset size and that

apply to community banks specifically. Representative provisions

are

described

below.

Representative Amendments that Apply to Smaller BHCs 

and Community Banks

The Volcker Rule. The Act exempts insured depository institutions

and their affiliates

from

application

of the Volcker

Rule,

 

provided

they

and

their

parent

company

have

$10

billion

or

 

less

in total consolidated

assets

and have

total trading

assets

 

and

trading

liabilities

of

5

percent

or

less

of

their

total

consolidated

assets.

(Act,

§ 203).

Representative Amendments that Apply Regardless of

Asset Size

Bank Secrecy Act Diligence and Verification for Mobile and

Online Account Opening. The Act permits insured depository

institutions and their affiliates to verify an individual’s identity

with the individual’s

scanned

driver’s

license

or personal

 

identification

card

in connection with the request

to open an

 

account

or obtain a financial product

or service

through

the

 

website

or mobile application

of the institution or its affiliate.

 

After

the driver’s

license

or identification

card

is used

for

this

purpose,

the financial institution or its affiliate

must

permanently

delete the scanned

image and any

copy

of the image.

 

This

section

of the Act preempts

any

conflicting

state laws

to

 

the

extent

of the conflict.

(Act,

§ 213).

For all banking entities, regardless of asset size, the Act

removes a restriction in the Volcker Rule that prohibited a

bank-affiliated investment adviser from using its name on

hedge funds and private equity funds, and allows such funds

to share the same name or a variation of the same name, if

several conditions are met: the fund’s name may not use the

word “bank,” and the investment adviser may not be an insured

depository institution, a BHC, or an FBO that is deemed to be a

BHC and may not share or use the same name as any of these

types of entities. (Act, § 204).

2

Jones Day White Paper

Federal Reserve Small Bank Holding Company Policy. The Act

requires the Federal Reserve Board to revise the “Small Bank

Holding Company and Savings and Loan Holding Company

Policy Statement” (12 CFR Part 225, Appendix C) within 180 days

of enactment by raising the threshold from $1 billion to $3 billion

in assets. This broader set of small bank holding companies is

excluded from the Basel I-based minimum risk-based capital

requirements of the Collins Amendment within the Dodd-Frank

Act (12 U.S.C. 5371(b)(5)). (Act, § 207). Recognizing that small

BHCs have less access to equity financing, the Federal Reserve

Board’s Policy Statement permits the formation and expansion

of small BHCs with higher debt levels than generally permitted

for larger BHCs if the small BHC meets certain conditions.

5

GAO Report on Consumer Reporting Agencies. Within one

year of the date of enactment of the Act, the U.S. Comptroller

General must submit to the Senate Committee on Banking,

Housing, and Urban Affairs and the House Committee on

Financial Services a report that reviews the current legal and

regulatory framework for consumer reporting agencies and

identifies any gaps in the rulemaking, supervision, or enforcement

by

state and federal

agencies under the Fair

Credit

 

Reporting

Act,

the

Gramm-Leach-Bliley

Act,

and

any

other

relevant

statutes. The

report

would

also

review

who owns

a consumer’s

credit

data, the causes

of consumer

reporting

errors,

 

responsibilities

of data furnishers

to provide

accurate

information,

and data security,

among other subjects.

(Act,

§ 308).

Extended Examination Cycle. The Act expands eligibility for 

Immunity for Reporting Suspected Elder Financial Abuse. 

the 18-month examination cycle from well-managed and well-

The Act provides immunity from any civil suit or administrative 

capitalized banks with $1 billion in assets to comparable banks

with $3 billion in assets. (Act, § 210).

Title III—Service Members Civil Relief Act

Title III of the Act clarifies and adds several protections for vulnerable

populations,

veterans,

consumers,

and homeowners.

 

Representative

provisions

are

described

below.

proceeding for officers and employees of covered financial

institutions, such as banks, investment advisers, broker-dealers,

and insurance

companies,

based

upon

disclosure

of suspected

financial exploitation of a senior

citizen to a state or

 

federal

financial agency,

law enforcement

agency,

the SEC,

or

a

state

or

local

agency

that

administers

adult

protective

services,

provided

that

the

officer

or

employee

has

undergone

 

training

that

meets

certain

requirements

on

identifying

and

 

reporting

the suspected

exploitation of a senior

citizen. A covered

financial institution will

have

immunity

from

any

civil suit

 

or

administrative

proceeding

from

a whistleblower

allegation

 

of

suspected

exploitation of a senior

citizen, provided

certain

persons

who

come

into

contact

with senior

citizens

have

 

received

appropriate

training.

(Act,

§ 303).

Credit Report Security Freezes. The Act places new requirements

on consumer

reporting

agencies. The

Act amends the

 

Fair

Credit

Reporting

Act to increase

the time period within

 

which

consumer

reporting

agencies must

provide

fraud

alerts

 

for

consumer

files

from

90

days

to

at

least

one

year

after

a

 

consumer

informs

the agency

that he or she has been a victim

 

of

fraud

or identity

theft.

The

Act requires

consumer

reporting

 

agencies

to

permit consumers

to place or remove

a security

 

freeze

on their credit

report,

free

of charge,

and to notify

consumers

of the right

to a security

freeze

by

specific notice language

titled “Consumers

Have

the Right

to Obtain a Security

 

Freeze.”

The

specific notice language

in the summary

of consumer

rights

to obtain a security

freeze

also

covers

an initial

 

or

extended

fraud

alert

as

an

alternative

to

a

security

freeze.

 

Consumer

reporting

agencies must

allow

consumers

to make

 

requests

for

a security

freeze,

initial or extended

fraud

alert,

 

active

duty

fraud

alert,

and opt out

of use

of information

in a

 

credit

report

through

a webpage,

but

that webpage

may not

 

be

the only mechanism for

making these

requests.

The

Act

 

requires

the

Federal

Trade

Commission

to

establish

a

single

 

webpage

that includes

a link

to each page

of each consumer

 

reporting

agency’s

webpage.

(Act,

§ 301).

Protections for Veterans. The Act amends the Fair Credit

Reporting Act to provide free and ongoing electronic credit

monitoring to active duty service members and to require

the exclusion of certain medical debt from credit reports of

veterans. (Act, § 302). Mortgage foreclosure relief for service

members under the Servicemember Civil Relief Act is made

permanent, and VA lenders must demonstrate a material benefit

when a mortgage

is refinanced.

(Act,

§§ 309 and 313).

Title IV—Tailoring Regulations for Certain Bank Holding

Companies

Title IV of the Act provides regulatory relief with respect to

enhanced prudential standards and liquidity coverage ratio

requirements and provides capital relief for custodial banks.

Representative provisions are described below.

3

Jones Day White Paper

Enhanced Prudential Standards. The Act raises the asset

threshold for application of the enhanced prudential standards

for BHCs, as set forth in the Dodd-Frank Act and the Federal

Reserve Board’s rules, from $50 billion to $250 billion in total

consolidated assets. This amendment is effective immediately

for BHCs with total consolidated assets of less than $100 billion

and becomes effective 18 months following enactment for BHCs

with between $100 billion and $250 billion in total consolidated

assets, unless the Federal Reserve Board acts earlier. 

The Act amends the prudential requirement for a risk committee

by

raising

the asset

threshold

from

$10 billion

to $50 billion

 

in

total

consolidated

assets.

The

Federal

Reserve

Board

may

 

require

any

publicly

traded

BHC with less than $50 billion

in

 

total

consolidated

assets

to establish

a risk committee

as the 

The Act adds a specific rule of construction to make clear that

the enhanced prudential standards amendments do not alter

the authority of the Federal Reserve Board regarding FBOs

with $100 billion or more in global total consolidated assets.

The Act specifies that nothing in the Act may be construed

to impact the legal effect of the Federal Reserve Board’s final

rule, “Enhanced Prudential Standards for [BHCs] and [FBOs]”

as the rule applies to FBOs with $100 billion or more in global

total consolidated assets. Further, the Act specifies that nothing

in

the

Act

limits

the

authority

of

the

Federal

Reserve

 

Board

to require

an intermediate

holding

company,

carry

out

 

enhanced

prudential

standards,

or

tailor

regulation

of

such

 

FBOs.

Accordingly,

the Act does not amend enhanced prudential

standards

for

FBOs with more

than $100 billion

in global

 

total

consolidated

assets.

Board determines necessary or appropriate to foster sound 

risk management practices. With respect to capital stress testing,

the Act ends company-run

stress

tests entirely

for

BHCs

 

with

under $250

billion

in assets,

replaces

mandatory

annual

 

and

semiannual

stress

testing with periodic

testing, and eliminates

the requirement

for

using an adverse

scenario

in company-run

and supervisory

stress

testing. 

Because the Act does not differentiate between U.S. BHCs and

FBOs that are considered BHCs due to their U.S. operations, an

FBO with less than $100 billion in global consolidated assets

may obtain regulatory relief from some enhanced prudential

standards, such as for resolution planning, liquidity stress testing,

and single

counterparty

credit

limits,

as the asset

threshold

applied

to

FBOs

was

previously

set

at

$50

billion

and

is

 

now

set

at $250

billion.

(Act,

§ 401). 

The Federal Reserve Board may apply enhanced prudential

standards, by order or rule, to an individual BHC or to a category

of BHCs with between

$100 billion

and $250

billion

in total

 

consolidated

assets

if the Board

determines that it is appropriate

to

do

so

to prevent

or

mitigate

risks

to U.S.

financial

stability

or to promote

safety

and soundness,

and considers

the

BHC’s

or a group

of BHC’s

capital,

risk, complexity,

financial

 

activities,

size,

and

other

appropriate

risk-related

factors.

None

 

of

the enhanced prudential

standards

amendments

made by

 

the

Act limits

the Federal

Reserve

Board’s

authority

to differentiate

among companies

in

consideration

of

their

capital,

risk,

 

complexity,

financial activities, size and other appropriate

riskrelated

factors,

or limits

the federal

banking

agencies’

authority

to promote

safe

and sound

operations.

Supplementary Leverage Ratio for Custodial Bank Deposits.

The Act requires the federal banking agencies to amend the

regulatory capital rules to specify that when calculating the

supplementary leverage ratio, BHCs and banks engaged in

custody, safekeeping, and asset servicing may exclude certain

funds

deposited

with

the

Federal

Reserve

System,

the

 

European

Central

Bank, and central

banks

of member countries

of

the

Organisation

for

Economic

Co-operation

and

 

Development

if assigned a zero

risk weight

under U.S.

capital

 

rules

and the sovereign

debt of the member country

is not

 

in

default

and

has

not

been

in

default

for

the

past

five

years.

 

(Act,

§ 402).

In sum, the Act raises the threshold for application of enhanced

prudential standards from $50 billion to $250 billion in total

consolidated assets, except that the thresholds for risk committees

and supervisory

stress

testing differ,

and the Federal

 

Reserve

Board

may determine to impose

a lower

threshold

for

 

a

particular

BHC to prevent

or mitigate U.S.

financial stability

 

or

to enhance safety

and soundness.

Treatment of Municipal Obligations. The Act requires the federal

banking agencies to amend the Liquidity Coverage Ratio rules.

Title V—Encouraging Capital Formation 

Title V of the Act is intended to encourage economic growth

by facilitating capital formation. Representative provisions are

described below.

4

Jones Day White Paper

Improving Access to Capital. The Act makes it easier for small-

to medium-sized public companies to use exemptions from

securities registration by expanding the exemption from registration

under

Regulation

A issued

by

the

SEC,

which

is

designed

 

to

facilitate

access

to

capital

for

smaller

companies

by

subjecting

them

to

fewer

disclosure

requirements.

(Act,

§ 508).

overpayment no later than 10 years after the payment. This

amendment is effective prospectively only. (Act, § 505).

Title VI—Protections for Student Borrowers

Protection in the Event of Death or Bankruptcy. The Act amends

the Truth in Lending Act to prohibit private education lenders

from accelerating a debt or declaring the debt in default upon

the bankruptcy or death of the cosigner. Similarly, the holder of

a private education loan must release a cosigner from the obligation

upon

the death of the student

borrower.

These

amendments

apply to private

education

loans

entered

into

180 days

or

 

more

after

the date of enactment

of the Act.

(Act,

§ 601).

Parity for Closed-End Investment Companies. The Act requires

the SEC to promulgate rules to allow closed-end investment

companies to use securities offering and proxy rules available

to other issuers. If the SEC fails to propose rules within one

year, and to finalize rules within two years, after the date of

enactment of the Act, qualifying registered closed-end funds

will be deemed to be eligible issuers. (Act, § 509).

Rehabilitation of Private Education Loans. The Act amends the

Fair Credit Reporting Act to allow a delinquent private student 

Expanding “Investment Company” Exception to Cover Venture 

borrower to make a one-time request to a financial institu-

Capital Funds. In an effort to reduce registration and disclosure

requirements,

the Act broadens

the scope

of an exemption

 

from

the

definition

of

“investment

company”

in

the

Investment

 

Company

Act to include

a “qualifying

venture

capital

fund”—a

 

venture

capital

fund

that

does

not

exceed

$10

million

in

aggregate

capital

contributions

and uncalled

committed

capital

and

 

that

has

no

more

than

250

beneficial investors

(an

increase

from

 

the

prior criterion of 100 beneficial investors).

(Act,

§ 504).

tion to remove a reported default from a consumer report if

the borrower satisfies the requirements of a loan rehabilitation

program offered by a financial institution that includes making

consecutive on-time monthly payments that demonstrate ability

and willingness

to repay

the loan.

(Act,

§ 602).

POTENTIAL IMPACTS ON THE FINANCIAL

SERVICES INDUSTRY

Encouraging Employee Ownership. The Act relieves some

investor disclosure requirements by expanding the exemption

from registration for certain securities sales by nonreporting

companies that offer securities to employees, consultants, and

advisers through compensation plans. Under the Act, the maximum

amount

of

securities

that

can

be

sold

within

the

exemption

is increased

from

$5 million

to $10 million.

(Act,

§ 507).

The Act represents the first major financial services deregulation

law in the decade

during

and since the financial crisis.

If Congress

remains

committed

to considering additional

 

regulatory

relief

measures,

the

Act

will

not

be

the

last

major

 

deregulation

law going forward.

Although the new law does not alter the fundamental structure 

SEC Staff Study on Algorithmic Trading. The Act requires the

staff of the SEC to report to the Senate Committee on Banking,

Housing, and Urban Affairs and to the House Committee on

Financial Services of the House of Representatives on the

risks and benefits of algorithmic trading in the U.S. capital markets.

(Act,

§ 502).

of the Dodd-Frank Act, when the law is implemented fully, financial

institutions may see

a meaningful

reduction

in regulatory

 

burden

and compliance

costs. This

is particularly

the case

for

 

regional

and smaller

banks

and BHCs, but

all

sizes of banks

 

and

BHCs

may

see

some

amount

of

reduction

of

regulatory

burden

and compliance

costs. Additionally,

the Act seeks

to facilitate

the formation

of capital

through

a variety

of steps, some

of

 

which

potentially

cover

banks

and BHCs, and could

encourage

 

economic

growth.

At

the

same

time,

many

provisions

of

the

Act

 

enhance

important

protections

for

consumers,

veterans,

private

 

student

loan

borrowers,

and vulnerable

populations.

Prospective SEC Crediting of Overpayments. The SEC must offset

toward

future

payments

any

overpayments

of assessments

 

and

fees

by

a

national

securities

exchange

or

a

national

securities

association

(i.e.,

the Financial

Industry

Regulatory

Authority),

 

provided

the

exchange

or

association

notifies

the

SEC

of

the

5

Jones Day White Paper

The recalibration of application of enhanced prudential standards

rules

and targeted

capital

relief

provided

by

the Act may

 

foster

mergers

between

and among community

and regional

 

banks

and acquisitions

by

larger

banks.

While

large

FBOs

 

with

small

U.S.

operations

will

remain

subject

to most of the

 

current

enhanced

prudential

standards,

FBOs

with

less

than

 

$100

billion

in total global

consolidated

assets

may see

relief

 

from

the prudential

standards

for

resolution

planning, liquidity

 

stress

testing,

and

single

counterparty

credit

limits.

Altogether,

 

these

changes, and perhaps more

to come,

demonstrate

the

 

imperative

for

regular

review

and

revision

of

the

Dodd-Frank

 

Act

and other federal

laws

to ensure

they are

accomplishing

 

their

intended

objectives.

ENDNOTES

1 The Economic Growth, Regulatory Relief, and Consumer Protection

Act, S. 2155, 115

 Cong. (2018) is available at https://www.congress.

gov/bill/115th-congress/senate-bill/2155/text.  

th

2 Pub. L. No. 111-203, 124 Stat. 1376 (2010).

3 The U.S. House of Representatives passed S. 2155, the Economic

Growth, Regulatory Relief, and Consumer Protection Act, on May

22, 2018, by a vote 258 to 159 with thirty-three Democrats voting

in favor

and one Republican

voting

against; the U.S.

Senate

 

passed

the bill

on March

14, 2018, by

vote

of 67

to 31 with sixteen

Democrats

and one Independent

joining the unanimous

 

Republican

support.

 

4 Dodd-Frank Act, § 165; 12 C.F.R. Part 252 (Regulation YY).

5 See 80 Fed. Reg. 20153 (April 15, 2015), 12 C.F.R. Appendix C to Part 225.

LAWYER CONTACTS

For further information, please contact your principal Firm representative or the lawyers listed below. General email messages

may be sent using our “Contact Us” form, which can be found at www.jonesday.com/contactus/. 

Lisa M. Ledbetter

Washington

+1.202.879.3933

[email protected] 

Philippe Goutay

Paris

+33.1.56.59.3939

[email protected]

Dan McLoon

Los Angeles

+1.213.243.2580

[email protected]

Edward J. Nalbantian

London / Paris

+44.77.2099.7429 / +33.1.56.59.39.23

[email protected]

Chip MacDonald

Atlanta

+1.404.581.8622

[email protected]

Michael Butowsky

New York

+1.212.326.8375

[email protected]

Alban Caillemer du Ferrage

Paris

+33.1.56.59.38.18

[email protected]

Colin C. Richard

Washington

+1.202.879.5567

[email protected]

Kayla M. Davis

Washington

+1.202.879.5428

[email protected]

Jones Day publications should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general

information purposes only and may not be quoted or referred to in any other publication or proceeding without the prior written consent of the

Firm, to be given or withheld at our discretion. To request reprint permission for any of our publications, please use our “Contact Us” form, which

can be found on our website at www.jonesday.com. The mailing of this publication is not intended to create, and receipt of it does not constitute,

an attorney-client relationship. The views set forth herein are the personal views of the authors and do not necessarily reflect those of the Firm.

© 2018 Jones Day. All rights reserved. Printed in the U.S.A.

Jones Day - Philippe Goutay, Edward J. Nalbantian and Michael R. Butowsky

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