CRS report – Financial Regulation: The Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155), May 14, 2018

“The Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155) was passed by the Senate on March 14, 2018. The bill generally aims to provide regulatory relief to banks, relax mortgage lending rules, relax capital formation regulations, and provide additional consumer protections related to credit reporting and other areas. This Insight briefly highlights major policy proposals. For a more detailed examination, see CRS Report R45073, Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155) and Selected Policy Issues, coordinated by [author name scrubbed]. Some observers assert the financial crisis of 2007-2009 revealed excessive risk had built up in the financial system, and that weaknesses in regulation contributed to that buildup and the resultant instability. In response, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203; Dodd-Frank). In addition, regulators strengthened rules under existing authorities, such as by implementing regulations adhering to the Basel III Accords—the international agreement setting standards for bank regulation. Following this broad overhaul of financial regulation, some observers argue the changes are an overcorrection and certain regulations are unduly burdensome. In general, S. 2155 aims to address these concerns by providing regulatory relief to segments of the financial system. Proponents of the bill assert it would provide targeted financial regulatory relief, foster economic growth, and provide increased consumer protections. Opponents of the bill argue it would needlessly pare back important Dodd-Frank protections to the benefit of large and profitable banks. Many proposals in S. 2155 can be grouped into one of five categories: (1) regulatory changes for “community” banks, (2) regulatory changes for large banks, (3) amendments to mortgage lending regulations, (4) new consumer protections in credit reporting, and (5) regulatory changes in capital markets.”