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house Bill H.R. 4292

Should Banks Get Feedback From Regulators on Their “Living Wills”?

Argument in favor

This common sense bill would improve and codify into law the process by which banks create living wills to ensure that if they fail they won’t drag the rest of the financial sector down with them. It has bipartisan support and passed out of committee unanimously.

Denise's Opinion
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01/30/2018
It would protect us the Small account holders from getting screwed if there was an actual Law they had to follow and update every 2 years. But then again I’m dreaming if I really thing Big banks care about any account Anderson 500,000
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Leo's Opinion
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01/30/2018
Customers should know the contingency plans of the institution in which they deposit their money.
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John's Opinion
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01/30/2018
Banking is not a right. It is a privilege that needs to be regulated to protect our citizens and our economic system. Having banks follow this legislation is just common sense.
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Argument opposed

The existing regulatory process under which banks create living wills doesn’t need to be codified into law. There’s no need for regulators like the FDIC and the Federal Reserve to give banks feedback on their living wills.

Chris's Opinion
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01/29/2018
God you guys suck. Where’s the summary? How long has the bill been out?
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operaman's Opinion
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01/30/2018
“Living Wills?” Humans need a Will and in a sense, Banks are Corporations composed of shareholders. Wills are designed to protect family and assets when Humans pass on. Likewise, when Banks pass on, their Living Will will have the plans necessary for a careful liquidation and distribution of assets, including stockholders. Capitalism can take care of its own without any Federal assistance, leaving taxpayers out of the bailout loop and an opportunity for new business entities too grow from the Banks ashes.
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Erin's Opinion
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01/30/2018
The CBO states “there will be a small administrative fee” for providing such report. In Washington there is no such thing as a small administrative fee. More details need to be provided and the cost imposed upon taxpayers needs to be disclosed.
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What is House Bill H.R. 4292?

This bill would codify into law current regulatory practices that require large financial institutions to submit resolution plans (aka living wills) to the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve every two years. Living wills describe a bank’s strategy for a rapid and orderly resolution if the bank experiences financial distress or fails. The bill would also require the FDIC and Federal Reserve to provide additional feedback to firms about their living wills, and to publicly disclose the framework they use to assess the living wills.

Impact

Financial institutions creating living wills; the FDIC and the Federal Reserve.

Cost of House Bill H.R. 4292

The CBO estimates that enacting this bill would impose a small administrative cost on the FDIC and Federal Reserve that would have an insignificant net effect on the budget.

More Information

In-DepthSpeaking from the House floor in support of his bill to reform the living will process, sponsoring Rep. Lee Zeldin (R-NY) said:

“This legislation would provide needed reforms to the living will submission process, would ensure that impacted financial institutions get needed feedback from their regulators, and would uphold sensible standards to protect the financial system.”

This legislation passed the House Financial Services Committee on a unanimous 60-0 vote and has the support of three cosponsors, including two Democrats and one Republican.


Media:

Summary by Eric Revell

(Photo Credit: MBPROJEKT_Maciej_Biedkowski / iStock)

AKA

Financial Institution Living Will Improvement Act of 2017

Official Title

To reform the living will process under the Dodd-Frank Wall Street Reform and Consumer Protection Act.

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 January 30th, 2018
    Roll Call Vote 414 Yea / 0 Nay
      house Committees
      Committee on Financial Services
    IntroducedNovember 7th, 2017

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    It would protect us the Small account holders from getting screwed if there was an actual Law they had to follow and update every 2 years. But then again I’m dreaming if I really thing Big banks care about any account Anderson 500,000
    Like (22)
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    Share
    God you guys suck. Where’s the summary? How long has the bill been out?
    Like (10)
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    Share
    Customers should know the contingency plans of the institution in which they deposit their money.
    Like (19)
    Follow
    Share
    Banking is not a right. It is a privilege that needs to be regulated to protect our citizens and our economic system. Having banks follow this legislation is just common sense.
    Like (15)
    Follow
    Share
    “Living Wills?” Humans need a Will and in a sense, Banks are Corporations composed of shareholders. Wills are designed to protect family and assets when Humans pass on. Likewise, when Banks pass on, their Living Will will have the plans necessary for a careful liquidation and distribution of assets, including stockholders. Capitalism can take care of its own without any Federal assistance, leaving taxpayers out of the bailout loop and an opportunity for new business entities too grow from the Banks ashes.
    Like (8)
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    This seems like a common-sense measure to protect the bank accounts of individuals. It was the failure of banks that took us into the Great Depression. This is a way to protect funds for individuals and families and I am all for it.
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    The CBO states “there will be a small administrative fee” for providing such report. In Washington there is no such thing as a small administrative fee. More details need to be provided and the cost imposed upon taxpayers needs to be disclosed.
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    Codify it
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    Because banks are *totally* trustworthy in how they'll protect their small account holders when they collapse under the weight of their Deadbeat Billionaires. Yeah, sure, we can allow them to self-govern -- what could possibly go wrong... that hasn't gone wrong every single other time we've allowed the Financial Sector of the US to self-govern? *CoughGreatDepressionCough*
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    this is insane banks of all people should not be allowed this info
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    You may wonder why would he vote nay ? If any bank pulls the same crap they pulled in 08 there assets should become absorbed by the federal government & put toward the debt ! They will never do it again ! Let’s see that legislation become law !
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    You Tube Kevin Shipp ex-CIA operative.
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    Yes it does as this administration is attempting to remove all oversight of the industry that caused the recent housing collapse & recession.
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    This common sense bill would improve and codify into law the process by which banks create living wills to ensure that if they fail they won’t drag the rest of the financial sector down with them. It has bipartisan support and passed out of committee unanimously.
    Like (1)
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    While Trump has done all he can to deregulate some of the most important regulations that were passed in the last Administration to protect consumers and our economy, I feel it’s VERY important to stay focused on implementing additional regulations to protect our economy and the people most vulnerable to a downturn in the economy.
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    I agree. Banks should have a plan on how to save themselves. We couldn’t afford to bail big corporations out again.
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    Any regulation that is currently complied with shouldn't face any opposition unless it presents undue hardship. This bill does not. The only reason I can imagine banks giving push back here is if they are forced to take responsibility for their actions.
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    I don’t see any issue here! Regulators need to provide guidance to banks to make sure they have the proper planning in place in case of insolvency.
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    ?
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    Don't trust Republicans but this seems to be a basic and needed step to prevent and reduce another financial crisis.
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