H.R. 1116, TAILOR Act of 2017

TAILOR = Taking Account of Institutions with Low Operation Risk.

This bill requires federal financial regulatory agencies to: (1) tailor any regulatory actions so as to limit burdens on the institutions involved, with consideration of the risk profiles and business models of those institutions; and (2) report to Congress on specific actions taken to do so, as well as on other related issues. The bill’s tailoring requirement applies not only to future regulatory actions but also to regulations adopted within the last seven years.

Why This Bill Is Against Our Values:

“[This bill] would take a major step backwards on the progress made since the 2008 Financial Crisis to ensure our financial markets are stronger, more resilient, and more protective of consumers.

    The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) establishes a tiered and tailored regulatory framework for financial institutions. Instead of imposing a one-size-fits-all approach for regulating all firms, the Dodd-Frank Act focuses the toughest rules on the largest  and most complex financial firms that, as evidenced in the  2007-2009 financial crisis, can destabilize the financial  system and inflict long-lasting damage to the economy and the  constituents we serve.

    Congress has carefully monitored the implementation of the Dodd-Frank Act and, when warranted, has passed targeted legislation or encouraged regulators to further tailor rules to reduce unnecessary compliance requirements on community financial institutions while maintaining robust standards and appropriate protections that are in the public interest.

    If enacted, H.R. 1116 would undo these efforts by providing every financial institution overseen by agencies like the Federal Deposit Insurance Corporation (FDIC) or the Consumer Financial Protection Bureau with new opportunities to challenge rulemakings in court if they felt a regulation was not uniquely tailored to their individual firm.

    We share the belief that regulators must take into account, and tailor rules, for smaller sized institutions when appropriate. Unfortunately, the TAILOR Act would only serve to put consumers and the financial system at risk by subjecting important regulations to endless litigation.” (Source: Minority Views, House Report 115-588, Committee on Financial Services

“HR 1116 (the TAILOR Act) would force consumer and financial regulators to prioritize costs to Wall Street over benefits to the public before taking any action to control financial abuses, and empower financial institutions to overturn current and future consumer protections in court.” (Source: Joint statement from Americans for Financial Reform, Consumer Action, US PIRG, and 22 other groups)

More Info See Bill

 

2018-03-16T13:57:41+00:00