September 18, 2019

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September 17, 2019

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September 16, 2019

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Economic Growth, Regulatory Relief and Consumer Protection Act

On May 24, Public Law No. 115-74 was signed by President Trump. The law, also known as the Economic Growth, Regulatory Relief and Consumer Protection Act, has six parts:

  • Title I—Improving Consumer Access to Mortgage Credit

  • Title II—Regulatory Relief and Protecting Consumer Access to Credit

  • Tile III—Protections for Veterans, Consumers and Homeowners

  • Title IV—Tailoring Regulations for Certain Bank Holding Companies

  • Title V—Encouraging Capital Formation

  • Title VI—Protections for Student Borrowers

The law deals with many issues, but its most publicized provisions are ones that reduce some of the regulatory requirements that have been imposed on banks since the credit crisis. In particular, the law (1) exempts from the Volcker Rule banks with total assets of less than $10 billion (provided trading assets and liabilities comprise not more than 5 percent of total assets); (2) eases Volcker Rule name sharing restrictions; (3) increases the asset threshold for the application of certain enhanced prudential standards to certain bank holding companies and nonbank financial companies from $50 billion to $250 billion; (4) increases the asset threshold at which company-run stress tests are required from $10 billion to $250 billion; and (5) directs the Securities and Exchange Commission to deliver a report to Congress on the risks and benefits of algorithmic trading in capital markets.

The text of the new law is available here.

©2019 Katten Muchin Rosenman LLP


About this Author

Guy Dempsey Jr., Bank Regulations Legal Specialist, Katten Muchin

Guy C. Dempsey Jr. concentrates his practice on derivatives and structured products and on bank regulation. He advises clients on derivatives transactions of all types across all asset classes, as well as on the corporate governance, regulatory, collateral, compliance, insolvency and litigation issues associated with such products.

Much of Guy’s work involves helping bank and non-bank clients analyze the details and impact of the Dodd-Frank Act. He maintains deep knowledge of the banking laws and regulations relating to capital markets activities....