In a blog, the Competitive Enterprise Institute (CEI) wrote about the recent introduction of H.R. 3312 by Rep. Luetkemeyer, highlighting the benefits of the bill in properly calibrating regulations.
“In particular, Luetkemeyer’s bill directs the Federal Reserve to look at interconnectedness, cross-border activities, and complexity when assessing their regulatory requirements, not just size. Currently, the $50 billion limit is an arbitrary designation that subjects medium-sized regional banks, which range somewhere between $50 billion and $250 billion in assets, to the same standards as large, multi-trillion dollar banks.
“This change makes sense, as regional banks that predominately take deposits and have little exposure to derivatives or trading are clearly not “systemically important” as defined by Dodd-Frank.”
Continue reading on CEI’s blog.