The Washington Wrap is a weekly look at regulation, news and chatter from the Capitol. Send tips and ideas to brian.cheung@spglobal.com and polo.rocha@spglobal.com.
On Capitol Hill
The U.S. Senate started debate on the "Economic Growth, Regulatory Relief, and Consumer Protection Act" on March 6, putting the legislative wheels in motion on major revisions to the Dodd-Frank regulatory framework installed after the financial crisis.
While Senate Majority Leader Mitch McConnell, R-Ky., and Senate Banking Committee Chair Mike Crapo, R-Idaho, continue to negotiate with Democrats over how many amendments will be allowed in floor debate, the higher hurdle appears to be fellow Republicans on the House side.
House Financial Services Committee Chair Jeb Hensarling, R-Texas, wants to splice his committee's bills into the Senate package. By polishing a Senate bill that is more palatable to the House, Hensarling hopes to offer a streamlined legislative timeline that avoids conference and fast-tracks the legislation to President Donald Trump's desk. The White House officially supports the bill as currently written.
In a bundle of amendments introduced by Crapo late March 7, the House appeared to get at least eight provisions added to the Senate version.
But on March 8, Hensarling sent out a press release listing 29 of his committee's other bills "curiously left out." A House GOP aide said he believes Hensarling's goal is to "ping-pong proposals back and forth with the Senate," indicating that the House likely will not simply take up the Senate bill.
Hensarling's spokesperson insisted March 9 that the House is not "making demands" on the bill.
"The Senate has put forth their bill. The House has its bills. It is our expectation that those bills be reconciled through conference — be it formal or informal," spokesperson Sarah Flaim said in a statement.
Crapo told reporters that, with the package of amendments, the bill can avoid a formal conference.

The juggling act for McConnell and Crapo is further complicated by negotiations over the number of amendments that will be presented for floor debate. As of 6 p.m. ET March 8, there were 144 amendments filed from both supporters and opponents of the bill. An amendment pitched by Sen. Bob Corker, R-Tenn., would tighten the supplementary leverage ratio changes for custody banks to explicitly exclude JPMorgan Chase & Co. and Citigroup Inc. from benefiting as well.
But McConnell and Crapo have the final say in selecting how many — and which — amendments will be debated and voted on.
The odds of Senate passage remain high, since there are 12 Democrats and one Independent signed on the bill as cosponsors. Four Democrats not signed to the bill also voted in favor of advancing the bill March 6: Maggie Hassan and Jeanne Shaheen of New Hampshire, Bill Nelson of Florida and Debbie Stabenow of Michigan. New consumer protections in the amendment package concerning student borrowers, victims of identity fraud and service members dealing with foreclosure could woo more Democratic support.
Democrats opposing the bill, including Elizabeth Warren of Massachusetts and Sherrod Brown of Ohio, say the bill loosens critical safeguards on preventing another financial crisis. Opponents point to a Congressional Budget Office review released March 6 predicting a "slightly greater" probability of a systemically important financial institution failing under the proposed bill.
The Senate adjourned for the weekend March 8 and will reconvene in the afternoon March 12 to vote on Crapo's amendment package.
At the Regulators
The former head of World Acceptance Corp. reportedly asked Consumer Financial Protection Bureau Acting Director Mick Mulvaney to consider her for the role of permanent CFPB director. Mulvaney notably dropped the CFPB's investigation into World Acceptance on Jan. 22, the same day CEO Janet Matricciani resigned. A senior adviser to Mulvaney told the Associated Press on March 6 that Matricciani is not being considered for any job at the agency.
At the Office of the Comptroller of the Currency, agency head Joseph Otting recused himself March 7 from matters involving CIT Group Inc., UBS Bank USA and Central Bank & Trust Co. Otting also recused himself from items concerning employee pensions or any investment decision in employee pension funds at MUFG Union Bank NA and US Bank NA.
On March 9, American Banker reported that the OCC's former examiner-in-charge for Wells Fargo & Co. allegedly tipped off the company over its investigation before having clearance to disclose it.
Federal Reserve Vice Chairman for Supervision Randal Quarles said March 5 that "material changes" to the Volcker rule are coming. Quarles said he hopes to clarify the covered fund definition and outline regulatory assessment of foreign-owned banks with limited U.S. operations and smaller U.S. trading books.

