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house Bill H.R. 1334

Leveling the Playing Field Between Savings and Loan Holding Companies and Banks

Argument in favor

This corrects a mistake from legislation that was signed into law in 2012. It ensures that banks and savings and loan holding companies are playing by the same rules.

John's Opinion
···
09/22/2015
I recall that 2012 mistake, committed no doubt due to the undue influence of the big banks. Let's correct it.
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Argument opposed

There’s only about 600 saving and loan holding companies that this loophole applies to, and they’re all relatively small — why do they deserve special attention?

GrumpyMSgt's Opinion
···
08/09/2015
Look out when terms like "Level the playing field" or "comprehensive" are used by politicians.
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What is House Bill H.R. 1334?

This bill would set new thresholds to determine whether or not savings and loan holding companies have to register with the Securities and Exchange Commission (SEC). Specifically, the bill would change the number of shareholders of record (i.e. how many people who have their names on the books or have stocks in the company at a particular time) that must be in place for the SEC to:

  • Require that a security of the holding company be registered;
  • Suspend the registration of a security issued by a holding company; and
  • Suspend certain reporting requirements for a holding company.
Savings and loan holding companies that issue securities would also have to register with the Securities and Exchange Commission (SEC) if:

The registration would be terminated if a savings and loan holding company certifies that its holders of record have been reduced to fewer than 1,200 people.

Supplementary and periodic information filing responsibilities would also be suspended automatically if the securities of each class that the registration covers are held by fewer than 1,200 people.

Impact

Savings and Loan Holding Companies, their employees, holders of record, and the SEC.

Cost of House Bill H.R. 1334

$0.00
A CBO cost estimate found that this bill would not significantly impact federal spending.

More Information

In-Depth: The legislation that included the mistake requiring this fix — the Jumpstart Our Business Startups Act (JOBS Act) — was signed into law by President Obama on April 5, 2012. That bill allowed banks to avoid the costs associated with registering with the SEC if they had a relatively small number of shareholders, but didn’t cover savings and loan holding companies.

A similar legislative fix was passed by the House on a 417 to 4 vote in January 2014, but the Senate did not consider the legislation before the 113th Congress concluded.

Rep. Steve Womack (R-AR) sponsored this legislation, and said after introducing it that he is:

“Proud to lead the bipartisan effort to grant our nation’s 600 small savings and loan holding companies the same flexibility afforded to bank and bank holding companies so they can better serve their communities to enable job creation and economic growth.”

This legislation was passed by the House Financial Services Committee by an overwhelming margin of 60 to 0.


Media:

Summary by Eric Revell
(Photo Credit: "WinonaSavingsBankVault" by Jonathunder - Own work. Licensed under CC BY-SA 3.0 via Wikimedia Commons)

AKA

Holding Company Registration Threshold Equalization Act of 2015

Official Title

To amend the Securities Exchange Act of 1934 to make the shareholder threshold for registration of savings and loan holding companies the same as for bank holding companies.

bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
      senate Committees
      Committee on Banking, Housing, and Urban Affairs
  • The house Passed July 14th, 2015
    Passed by Voice Vote
      house Committees
      Committee on Financial Services
      Investor Protection, Entrepreneurship, and Capital Markets
    IntroducedMarch 4th, 2015

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    Look out when terms like "Level the playing field" or "comprehensive" are used by politicians.
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    Wasn't the lifting of Glass Steagall part of the problem that laid the economy low in 2008? These categories of investment serve different roles and should never have been equated and allowed to consolidate.
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    This doesn't sound like it is a good idea.
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    Hey an idea lets end the FED and congress do its job as the constitution said! Congress shall coin money and shall regulate the value. Why continue to pay a private firm such as the FEDERAL RESERVE to print money with no value backed by nothing! And pay interest on it. This called enslavement. Do your job constitutional responsibilities congress!
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    If a bank gives a person a mortgage, especially if the bank kind of knows it will be hard for these people. THEY Should BE HELD RESPONSIBLE. PERIOD. NO MORE BAIL OUTS FOR BEING STUPID. THAT WAY BEFORE HIVING A LOAN THE BANKS WOULD MAKE SURE THE PEOPLE QUALIFY. Just my opinion
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    They serve different markets
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    Common sense.
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    I recall that 2012 mistake, committed no doubt due to the undue influence of the big banks. Let's correct it.
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