The House passed—by a bipartisan 292-122 vote—a bill that would help banks continue to use swaps as part of their prudent risk management portfolio. The ABA-supported H.R. 992 would reform the so-called swaps push-out rule in the Dodd-Frank Act requiring banks to form separate affiliates to conduct certain swaps, which many banks use as a routine part of their risk management policies.
The White House has said that the bill—approved by the House Committees on Financial Services and Agriculture by bipartisan majorities—“could be disruptive” to the implementation of the remaining derivatives provisions in the Dodd-Frank Act. Its prospects in the Senate are uncertain.
Read ABA’s letter on swap reform.