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Senate passes Dodd-Frank revision bill; Wells Fargo faces sanctions

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Senate passes Dodd-Frank revision bill; Wells Fargo faces sanctions

Editor's note: The publication of this feature was delayed due to technical issues.

In a 67-31 vote, the U.S. Senate passed legislation revising Dodd-Frank. The revision bill would provide large regional banks relief by raising the asset threshold for the enhanced regulation of systemically important financial institutions from $50 billion to $250 billion. The bill would also provide an exemption from the Volcker rule for firms with less than $10 billion in assets.

The U.S. House of Representatives is now tasked with legislating its own version of the bill. Its game plan was to create a conference committee between both legislative chambers to reconcile differences between the Senate package and the House's more aggressive Financial CHOICE Act.

In other government and regulatory news, the Consumer Financial Protection Bureau is seeking public comment on its issued regulations as well as its new rulemaking authorities under Dodd-Frank.

Rep. Dennis Ross, R-Fla., introduced H.R.5266, a bill that would amend the Consumer Financial Protection Act of 2010 to make the CFPB an independent Financial Product Safety Commission. The bill has been referred to the House Financial Services Committee.

Two House Financial Services subcommittees will hold hearings today — "Evaluating [the Committee on Foreign Investment in the U.S.]: Administration Perspectives" at 10 a.m. ET and "After the Breach: the Monetization and Illicit Use of Stolen Data" at 2 p.m. ET.

President Donald Trump's administration is considering Randal Quarles, the Federal Reserve's vice chairman for supervision, for chairman of the Financial Stability Board, "people familiar with the deliberations" told the Financial Times.

In banking news, Wells Fargo & Co. is facing regulatory sanctions for getting commissions from its auto insurance policies forced on auto borrowers who did not need it, Reuters reports, citing "people with direct knowledge of the probes."

Meanwhile, Wells Fargo paid CEO Tim Sloan a total compensation of $17.6 million in 2017, up from $13 million the previous year, the Associated Press reports. In comparison, a median employee at the bank was paid $60,446 in 2017, resulting in a CEO pay ratio of 291 to 1.

On the M&A front, Massachusetts-based HarborOne Bancorp Inc (MHC) is acquiring Rhode Island-based Coastway Bancorp Inc. for approximately $125.6 million in cash.

Specialty lender Walker & Dunlop Inc. is buying JCR Capital Investment Corp., a Denver-based alternative investment manager with more than $800 million in assets under management, in an all-cash transaction.

Bob Froehlich has stepped down as chairman of First Capital Investment Corp. as the latter shifts its strategic focus to investments in healthcare companies. Froehlich had criticized the move, saying that it limits upside and comes with a "tremendous" downside risk if the sector performs poorly.

In credit union news, the National Credit Union Administration placed Chicago-based Beverly Bus Garage FCU into conservatorship, citing "unsafe and unsound practices."

In other parts of the world

Asia-Pacific: HK probes 'reckless' IPO sponsors; ICICI Bank sets price range for unit's float

Europe: BNP Paribas in final talks to buy RBI unit; Munich Re launches €1B buyback

Middle East & Africa: StanChart to launch 1st online bank in Ivory Coast; Moody's downgrades Tunisia

The day ahead

Early morning futures indicators pointed to a mixed opening for the U.S. market.

In Asia, the Hang Seng rose 0.34% to 31,541.10, and the Nikkei 225 rose 0.12% to 21,803.95.

In Europe, around midday, the FTSE 100 rose 0.15% to 7,143.20, and the Euronext 100 rose 0.15% to 1,022.31.

On the macro front

The jobless claims report, the Empire State manufacturing survey, the housing market index, the EIA natural gas report, the Fed balance sheet and the money supply report are due out today.

The Daily Dose is updated as of 7:30 a.m. ET. Some external links may require a subscription.