In a 67-31 vote, the US Senate passed the Economic Growth, Regulatory Relief, and Consumer Protection Act, paving the way for the bill to become law.
The bill amends the Bank Holding Company Act of 1956 to exempt banks with assets valued at less than $10 billion from the Volcker Rule, which prohibits banking agencies from engaging in proprietary trading or entering into certain relationships with hedge funds and private-equity funds. Certain banks are also exempted by the bill from specified capital and leverage ratios, with federal banking agencies directed to promulgate new requirements.
Also, provisions relating to enhanced prudential regulation for financial institutions are modified, including those related to stress testing, leverage requirements, and the use of municipal bonds for purposes of meeting liquidity requirements.