WASHINGTON, D.C. – Yesterday, during the Senate Banking Committee hearing on the Financial Stability Oversight Council’s (FSOC) 2017 report to Congress, Ranking Member Brown confirmed that the Crapo Dodd-Frank roll back bill, S.2155, would, if enacted, benefit some of the world’s biggest banks. In response to Senator Brown, Secretary Mnuchin confirmed that big foreign and shadow banks like Deutsche Bank and Santander would get a windfall exemption from Wall Street Reform’s strict financial stability rules. Secretary Mnuchin also confirmed that big nonbanks like hedge funds would also benefit from the legislation.
Watch the exchange between Ranking Member Brown and Sec. Mnuchin here:
On Background: S. 2155 bill sponsors argue that nothing in the bill explicitly deregulates large foreign banks, but the June 2017 Treasury report on banking deregulation made clear that the Trump Administration would implement S.2155 such that foreign megabanks would get a windfall exemption from Dodd-Frank’s enhanced prudential standards.