Senator unveils new TAILOR bill
Feb. 15, 2017 -- Legislation aimed at giving regulatory relief to smaller credit unions and banks by requiring their federal regulators (including NCUA and the CFPB) to tailor their rules to fit financial institutions’ business models and risk profiles has been reintroduced in the Senate.
As he did in the previous Congress, Sen. Mike Rounds (R-S.C.) has introduced the “Taking Account of Institutions with Low Operational Risk Act” (the TAILOR Act, S. 366), which mirrors House legislation of the same name that was also introduced in the previous Congress. That bill, H.R. 2896, was sent by the House Financial Services Committee to the House floor, but no further action was taken. In addition to requiring regulators to take risk into account,
Rounds’ bill would require regulators to provide an annual report to Congress outlining the steps taken to “tailor” their regulations, and; review all regulations issued by the agencies since the Dodd-Frank Act was passed in 2010, and revise those that do not conform to the new TAILOR Act.
The House version of last year’s bill was incorporated into the Financial CHOICE Act, the sweeping reform of the Dodd-Frank Act proposed by House Financial Services Committee Chairman Jeb Hensarling (R-Texas). The committee leader is reportedly preparing a new version of his reform bill; introduction is expected soon.