WASHINGTON—Democrats on the Senate Banking Committee have signed a letter that threatens to oppose legislation being pushed by Committee Chairman Richard Shelby (R-AL) that offers regulatory relief to financial institutions.
Ten Democrats signed the letter and say they are prepared to vote against it should it come to a committee vote next week. In the letter the Democratic members say they have “concern and great disappointment” as they have yet to receive a draft of Shelby’s plan, which is being written by staff.
Details of what relief will be offered in the bill have not yet been provided, but Shelby has been working with his Democratic counterpart, Sen. Sherrod Brown (D-OH) on a bill that would lighten the regulatory burden on community banks and credit unions, among other changes. There is some disagreement, however, over the provisions to be included in that legislation.
As a result of the letter, Shelby has delayed a vote on the bill until May 21. Both NAFCU and CUNA have been supportive of the regulatory relief measures proposed, which have included exemptions from federal mortgage underwriting rules, among other things.
Shelby indicated he will show more specifics to Democratic members sometime this week.