New House bill pulls back on Dodd-Frank

Scott GarrettA bipartisan group in the House Representatives has introduced a bill to repeal a provision of the Dodd-Frank Act that put U.S.-based financial companies at a disadvantage to their international counterparts.

“In this time of great economic turmoil, Washington can give the American people no greater gift than to restore certainty in the marketplace and put our job creators on a level playing field with the international community,” Rep. Scott Garrett (R-N.J.), the chair of the House Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, said. “This common sense, bipartisan bill does exactly that. By giving companies who execute swap transactions legal certainty to know when they are subject to U.S. or foreign regulations, this bill ensures that transactions are not driven overseas and that American companies are not disadvantaged.”

Garrett and Rep. Jim Himes (D-Conn.) introduced the Swap Jurisdiction Certainty Act on Monday. The bill addresses a section in the Dodd-Frank Act that the sponsors say could limit the competitiveness of U.S. banks that conduct international business transactions with non-U.S. entities.

“As we work to strengthen the economy here at home, it’s important that our rules recognize we are competing in a global marketplace,” Himes said. “This legislation strikes a balance that will protect American financial security while helping to ensure that home-grown financial companies are able to compete on a level playing field with their international counterparts, which will help keep more business activity here in the U.S.”

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