Regulators Could Act While Congress Is Out
Industry experts suggest that August could prove to be an eventful month. Congress is set to start a month-long recess at the beginning of August, with signs potentially pointing toward actions on unfinished regulatory business, including Dodd-Frank Act rules and reports.

Some of these closely watched rules include defining a “qualified residential mortgage,” and finalizing the “liquidity coverage ratio” for large banks, Regulation AB II final rule, and Credit Risk Retention rule.

Recently, Securities and Exchange Commission (“SEC”) Chair Mary Jo White also stated that she “expect(s) the Commission will soon implement critical Dodd-Frank Act rules for credit rating agencies and securitization.” Additionally, the SEC released new rules governing money market funds on July 23rd.

Regulatory developments after regulators take a recess has been common in past years. Previous actions taken during the month of August include the Federal Reserve’s swipe fee limits being thrown out by a federal court ruling; President Obama announcing his support to replace Government-Sponsored Enterprises with a private mortgage market protected by a government backstop; the Federal Reserve releasing a report providing an update on capital planning at stress-tested banks; and bank regulators issuing a revised proposal on the risk retention rule.
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