DAILY062123
Waters Advances Post-SVB Proposals
HFSC Ranking Member Waters (D-CA) today released ten Democratic bills in response to recent bank failures, noting — as is indeed the case for at least some of these measures – that Republicans expressed interest in them at the last committee mark-up. That said, today’s hearing with Chairman Powell (see forthcoming FedFin analysis) indicates that Republicans will launch a full-bore attack on higher bank-capital requirements.
Unusual Bipartisanship Advances Senate Clawback Bill
We will await text to determine the full impact of the bill approved today by Senate Banking, but the 21-2 vote makes it clear that it will have no trouble navigating the Senate floor unless more controversial riders are attached. We doubt this will be the case given the clear intention on both sides of the aisle to agree on a viable approach to executive clawbacks, moving away from the Warren-Vance bill (see FSM Report COMPENSATION36) to give the FDIC discretion to preserve “white-knight” compensation and slightly limit the bill’s scope.
Schumer Lays Out Senate’s AI Approach
Kicking off a high-priority Senate action plan, Senate Majority Leader Schumer (D-NY) today laid out his AI framework dubbed the Safe Innovation Framework. Acknowledging that Congress knows very little about AI and what regulation is needed, he did not indicate any specifics or timing on upcoming legislation beyond outlining the framework’s priorities.