- Under current crisis-era law, those financial companies with more than $50B in assets are subject to a heightened standard of regulation and capital requirements.
- The House bill passed last night (vote was 288-130) would entirely scrap any threshold in favor of a formula the central bank already uses to determine how much extra capital a lender needs to hold.
- A bill working its way through the Senate - which also has bipartisan support and is expected to be voted on early next year - would instead raise the threshold to $250B from $50B. It's not yet clear how the approaches will be reconciled in conference.
- No matter what, regulatory relief appears to be on the way for mid-size regional lenders above $50B who are getting penalized with extra costs, and for those just under $50B who are worried about growing their way above that level.
- ETFs: XLF, FAS, FAZ, KRE, VFH, KBE, UYG, FNCL, IYF, BTO, IAT, IYG, KBWB, RYF, QABA, KBWR, FXO, SEF, FINU, DPST, RWW, FINZ, WDRW, JHMF, FAZZ, FTXO, FNCF
- Now read: Front Running 2018
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