The House is expected later this week to vote on the ABA-advocated Systemic Risk Designation Improvement Act (H.R. 6392), which would eliminate the automatic designation of banks as systemically important based solely on asset size. Introduced by Rep. Blaine Luetkemeyer (R-Mo.), the bill recognizes that regulators should consider many different components of risk.
The bill was expected to come to a vote in September but was pulled from consideration due to concerns about its effect on the federal budget. H.R. 6392 includes new language to address those concerns. It was previously passed by a strong bipartisan vote in the House Financial Services Committee.