Shortly before the 114th Congress adjourned at the end of 2016, the House passed legislation to revise the way large BHCs are regulated to address systemic risk. The Dodd-Frank Act requires that all BHCs with assets over $50 billion be governed by an array of capital, liquidity, risk-management, and related systemic regulations, rules that are increasingly tailored to reflect differing size and business-model risk profiles but that nonetheless impose significant costs on all covered BHCs. This legislation – which will be advanced again in this or other forms in the next Congress with greater chances of passage – creates a formal process that would exempt many BHCs now under the FRB’s systemic regulations.
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