Tags: House | bill | SEC | passed

House Financial Services Approves Minor Bills

By    |   Tuesday, 19 Nov 2013 12:54 PM

The House Financial Services Committee, chaired by Rep. Jeb Hensarling, R-Texas, managed to squeeze about an hour's worth of work into a seven-hour meeting on Nov. 14 as it approved five minor bills, only one of which was controversial.

The purpose of this article is to illustrate how this committee is spending its time while Rome burns and to facilitate further inquiry by readers who might want to take a closer look at these bills.

The prospects for Senate action on these bills are doubtful, as bills passed by the House often languish in the inbox of the Senate Banking Committee, but last year's Jumpstart Our Business Startups (JOBS) Act demonstrated that Congress is interested in showing that it is interested in taking steps that at least appear to boost the economy.

If any of these bills does receive Senate action, they could ultimately turn up anywhere, perhaps attached to any other legislation that appears to have a chance of passage.

The five bills approved were:

1. H.R. 3468 — Credit Union Share Insurance Parity Act — passed on a voice vote with one amendment. This obscure bill provides insurance coverage for specific types of accounts of credit union members, such as lawyers, for the benefit of nonmembers, such as clients.

2. H.R. 3329 — a bill to help community banks with up to $1 billion in assets, up from the current $500 million, and provide greater flexibility in using "acquisition debt" in the transfer of ownership.

3. H.R. 1800 — Small Business Credit Availability Act — passed, with two amendments on a strict party-line vote of 31-26, to allow Business Development Companies (BDCs) to use more leverage as they trade in the securities of investment advisers or advisers to investment companies (mutual funds).

4. H.R. 2274 — Small Business, Mergers, Acquisitions, Sales and Brokerage Simplification Act — passed unanimously on a recorded vote. This bill provides mergers and acquisition brokers, by means of legislation, additional operational flexibility, such as the ability to file required disclosure documents electronically, that they have not been able to obtain by regulation through the Securities and Exchange Commission (SEC).

5. H.R. 3448 — Small Cap Liquidity Reform Act — also passed on a unanimous recorded vote with four amendments, to provide for an optional pilot program to test the merits of allowing emerging growth companies to experiment with larger tick sizes than the minimal spreads that now prevail in conventional trading.

The SEC has been ambivalent as to whether it would conduct a pilot program to test tick sizes. Evidently, participation by issuers would be optional, but now the SEC would be required to conduct a pilot program. At the hearing on this bill, panelists reported a range of preferences as to how wide spreads should be and whether trading could take place within the spread.

On Nov. 20, the committee is scheduled to take up several bills tweaking the Consumer Financial Protection Bureau (CFPB). The chances of any of these escaping the Senate Banking Committee's inbox are extremely remote, because that committee likes the CFPB as it is.

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
Robert-Feinberg
The House Financial Services Committee, chaired by Rep. Jeb Hensarling, R-Texas, managed to squeeze about an hour's worth of work into a seven-hour meeting on Nov. 14 as it approved five minor bills, only one of which was controversial.
House,bill,SEC,passed
506
2013-54-19
Tuesday, 19 Nov 2013 12:54 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved