On Wednesday, the House overwhelmingly passed an extension of TRIA by a vote of 417-7. The House vote is a step closer to ensuring the bill does not expire at years’ end. The legislation will now be sent to the Senate. Most Senators back the reauthorization of TRIA, however, multiple Democrats oppose provisions overhauling the Dodd-Frank financial regulatory structure. These Dodd-Frank changes resisted by Democrats in the Senate would exempt non-financial companies from new derivatives regulations.
Financial Services Chairman Jeb Hensarling (R-TX) negotiated TRIA with Senator Charles Schumer, a New York Democrat. In addition to the Dodd-Frank language, Republican Senator Tom Coburn (R-OK) said this week that he objects to another provision in the legislation creating a nonprofit membership organization for insurance agents and brokers operating outside their state. Even with these concerns, the Senate will continue to work to pass the measure later this week.