Crapo calls for 'bipartisan, common-sense' reform of financial regulations

Senate Banking Committee chairman says regulatory burden 'is becoming as big an issue as the tax code'

May 17, 2017 @ 4:22 pm

By Mark Schoeff Jr.

Sen. Mike Crapo
+ Zoom
Sen. Mike Crapo (Bloomberg)

Reducing federal financial regulations is the top priority for the Senate Banking Committee, its leader said on Wednesday.

Sen. Mike Crapo, R-Idaho and chairman of the panel, said that excessive regulation holds back the economy.

"It's becoming as big an issue as the tax code and the national debt in term of big-ticket issues we need to face and deal with in America," Mr. Crapo said at the Financial Industry Regulatory Authority Inc.'s annual conference in Washington. "Our goals should be to promote smart, efficient, better regulation, not just more regulation."

He said the Treasury Department's review of financial rules, a directive from President Donald J. Trump, gives the issue momentum.

"We will have a strong grounding from which to build a common-sense financial regulation reform process in America," Mr. Crapo said. "My goal this Congress is to work in a bipartisan manner with members of the Senate Banking Committee, the administration, with [House Financial Services Committee] Chairman [Jeb] Hensarling [R-Texas] and with the regulators to strike a smart balance with thoughtful regulation that promotes economic growth."

Mr. Crapo's insistence on generating support from both sides of the aisle could cause problems in the Senate for Mr. Hensarling's bill that would overhaul the Dodd-Frank financial reform law. That measure was recently approved on a party-line vote in committee and could reach the House floor next week. It contains a provision that would kill the Labor Department's fiduciary duty rule.

Mr. Crapo said that his panel is seeking "bipartisan support for legislation." An example is a bill it approved earlier this spring that would ease restrictions on brokers' dissemination of research on exchange traded funds.

At that hearing, Democrats on the committee advocated legislation that would require Finra to establish a fund to pay arbitration awards to investors who are stiffed by losing brokerages that declare bankruptcy. The Finra board last week advanced a measure that addresses unpaid arbitration claims but doesn't set up an insurance fund.

Finra reform is not yet rising on the Senate Banking Committee agenda.

"Yes, there's been some discussion, but it's always a general process, not in detail," Mr. Crapo told reporters after his speech.

Mr. Crapo, whose former aide Gregory J. Dean Jr. is now Finra senior vice president for government affairs, praised Finra's recently launched self-assessment initiative, Finra 360.

"More folks see that Finra is listening to its members and to the public and, I might add, to members of Congress," Mr. Crapo said. "Finra 360 will create a framework for the organization to convert feedback and input into action — action that will result in continued progress."

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Schwab's Jon Beatty: How independent firms are winning high-net-worth clients

Independent advisers have a distinct advantage when it comes to acquiring new clients, according to Schwab's latest RIA Benchmarking Study. Jon Beatty, senior vice president at Schwab Advisor Services, discusses the findings.

Latest news & opinion

Vanguard winning at bond inflows, too

But iShares is strong competition.

Sen. Gary Peters brings broker background to work every day on Capitol Hill

Michigan Democrat resists ripping up DOL fiduciary rule but would be open to some changes.

DOL fiduciary rule causing DC-plan record keepers to change business with insurance agents

Principal has communicated that independent agents must change their business models to keep receiving compensation.

DOL fiduciary rule opponents want to push implementation back until 2019

ICI, Chamber of Commerce among groups asking for delay, while Democratic lawmakers call on DOL to keep to its earlier planned schedule of Jan. 1, 2018.

Take 5: Vanguard's new CIO Greg Davis talks bonds, stocks and costs

Having just stepped into the role, this veteran of the firm now oversees $3.8 trillion in assets in more than 300 mutual funds and exchange-traded funds.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print