Just hours after Senate Majority Leader Harry Reid (D-NV) secured a second cloture vote, the Senate voted on
S. 3217, passing it 59 to 39. This means the legislation now moves to the House where it will be reconciled with the House version. The LSCU and CUNA continue to not support the legislation because of an amendment to regulate interchange fees. CUNA will now work with the House on language to the interchange fees amendment. As a whole, CUNA, along with Leagues and credit unions, was able to incorporate some revisions which improved the bill. Chief among those revisions was language that gave the $10 billion threshold under which credit unions will be examined by their prudential regulator rather than the Consumer Financial Protection Bureau. CUNA and the League now turn their attention to the House and will continue to improve the legislation there.
CNNmoney.com quoted Sen. Richard Shelby's (R-AL) opposition to the bill when he called it a "massive new consumer bureaucracy" and a "liberal activists' dream come true."
"This bill doesn't listen to the American people -- it promises massive government overreach in ordinary business transactions," Shelby said.
According to CNN, here are the next steps for the legislation as it heads to the House. The Senate will appoint 12 members, seven Democrats and five Republicans, to negotiate with the House over differences in the bill. There are several differences between the House and Senate versions. The Senate bill limits the size and scope of banks' investment activities, preventing them from owning hedge funds and trading on their own accounts. It also includes a controversial measure preventing banks from trading any derivatives. Banks would be forced to spin off their swaps desks that make these trades. The House bill lacks such limits on banks' investment work. Also, while both versions of the bill create a council of regulators who monitor big Wall Street banks, the Senate gives the top job of running that panel to the Treasury Secretary and the House gives the top position to the Fed chairman.
"The two bills are very similar, and the House is ready to go to conference to work out the remaining issues," House Financial Services Chairman Barney Frank, D-Mass., said in a statement. "I am confident that we can have a bill ready for President Obama's signature very soon."
To read more about the bill or see CUNA's efforts to educate lawmakers on the position of credit unions, check out our Regulatory Restructuring Resources area by
Click here to read the full CNN story.