Today, the House passed an 11-bill package with a 271-154 vote (H.R. 37, the Promoting Job Creation and Reducing Small Business Burdens Act). The package, which amends various provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), had failed last week to reach the two-thirds majority vote that was necessary to pass under suspension of the rules.
H.R. 37, which now awaits consideration in the Senate, would delay the Volcker Rule’s ban on banks selling off collateralized loans obligations (CLOs) until July 2019, exempt non-financial companies from margin requirements, and allow affiliates of such end-users to trade with swap dealers and remain exempt from clearing requirements. The package also includes language to amend the indemnification provision related to the sharing of swap data repository information.
The future of H.R. 37 remains uncertain in the Senate, even under a Republican majority, because the variety of issues included in it will generate more interest (and opposition). As previously reported, even if this package is ultimately adopted by the full Senate, the White House has expressed its strong opposition and its intent to veto the legislation.