The TanMan, Weeper of the House John Boehner, must have been feeling his oats after being reelected Speaker. He was cocky and used a procedural rule for the GOP’s attempt to delay the “Volcker Rule” under Dodd-Frank regulations on financial services, requiring a two-thirds majority to pass. Oops! It blew up in his face.
From Bloomberg, Republicans Lose House Vote on Bill Easing Dodd-Frank:
On the second day of Congress’s new session, U.S. House Republicans lost a bid to quickly pass legislation to relax some requirements under the 2010 Dodd-Frank financial regulatory law.
The measure would delay until July 2019 a provision of the law’s Volcker Rule intended to limit risky investments by banks, and make other changes.
The package was defeated because Republican leaders used a voting procedure usually reserved for non-controversial measures, requiring two-thirds support for passage.
Minority Leader Nancy Pelosi urged Democrats not to support the measure, which failed on a 276-146 vote with 282 needed. She called the legislation “an 11-bill Wall Street wish list” in an e-mailed statement. After the vote, she said in a statement that she “was proud Democrats had stood together to protect critical Wall Street reforms.” [35 Democrats did not.]
The vote margin would be enough to pass the measure under a non-expedited procedure requiring a simple majority.
Leaders plan to bring back the bill for such a vote, said a Republican leadership aide who sought anonymity.
Those voting for the measure, H.R. 37, included 241 Republicans and 35 Democrats. Opponents included 145 Democrats and one Republican.
Once again, Rep. Kyrsten Sinema joined with Arizona’s GOP congressional delegation to vote to delay the “Volcker Rule” under Dodd-Frank. Sinema is proving to be a “squishy” Democrat in the first week of the 114th Congress.
The Dodd-Frank law’s Volcker Rule would require banks to sell their investments in collateralized loan obligations, which are securitized pools of commercial and corporate debt that make regular payments to investors.
The Federal Reserve has delayed that provision’s effective date until July 2017, and the bill would grant another two-year reprieve.
In December, Congress repealed a restriction on derivatives trades that Wall Street firms had aggressively lobbied against.
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“Republicans are seeking to tie the hands of Wall Street’s watchdogs and further delay the Volcker rule that protects the American economy by prohibiting large banks from risky gambling with taxpayer-backed funds,” said Pelosi of California.
It would when it actually takes effect. Currently the Volcker Rule is not in effect.