Sens. Mark Warner (D-Va.) and Patrick Toomey (R-Penn.) introduced legislation on April 11 that would extend an exemption to commercial banks and savings and loan associations from Dodd-Frank measures requiring the regulation of municipal advisors.
The legislation—S. 710—has been backed by the American Bankers Association, which sent a letter to the senators regarding the bill.
“ABA believes that Congress did not intend for banks and savings institutions that are already supervised and examined to be regulated as municipal advisors,” the ABA said. “Both the exemptions in Section 975 and the fact that examination authority was provided solely to the SEC support this view. ABA strongly believes a complete exemption is required because these institutions provide such a broad array of traditional banking products and services to municipalities that any limited exemption will necessarily cover activities that should not be captured.”
Other bill co-sponsors include Sens. Thomas R. Carper (D-Del.), Jerry Moran (R-Kan.), Mike Johanns (R-Neb.), Claire McCaskill (D-Mo.) and Saxby Chambliss (R-Ga.).