House Democrats Oppose Financial Choice Act Provisions

House Democrats on Wednesday opposed a provision in the Financial Choice Act that “would allow banks to comply with fewer rules in exchange for holding more capital,” American Banker reported. “Rep. Blaine Luetkemeyer, R-Mo., said if the biggest banks embraced the 10% leverage ratio provision, it would make the financial system safer because they would have to add $430 billion to their capital structures in order to become eligible. … Democrats’ objections to the bill go much deeper than just the leverage ratio off-ramp. It would also repeal the Federal Deposit Insurance Corp.’s Orderly Liquidation Authority …. It also makes structural changes to the Consumer Financial Protection Bureau which is a nonstarter for Democrats.”

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