Sen. Mike Rounds (R-S.D.) is urging banks to abandon efforts to repeal the credit union tax exemption and instead unite with them to push regulatory overhaul legislation.
Rounds’ office today confirmed published reports that the senator told those attending the American Bankers Association government relations conference that bankers should work with credit unions to push for legislation that overhauls Dodd-Frank.
The Independent Community Bankers of America last week identified repeal of the tax exemption as one of its priorities for 2017.
Meanwhile, Rounds, a member of the Senate Banking Committee, is continuing his efforts to overhaul the financial institution regulatory regime.
This week, he introduced legislation that would require independent agencies, such as the CFPB and the NCUA, to submit rules to the Office of Management and Budget’s Office of Information and Regulatory Affairs before they are issued.
Agencies under direct control of the president already submit proposed and final rules to OMB’s Office of Information and Regulatory Affairs (OIRA) before they are issued. And while presidents have encouraged independent agencies to submit rules to OMB, the agencies are not required to send them.
The NCUA does not send proposed rules to OMB, but does submit final rules to the agency. The CFPB, as an independent agency, also is not required to submit its rules for review.
“The OIRA Insight, Reform and Accountability Act would bring to light more rules being promulgated by independent agencies and give a stronger voice to state, local and tribal governments in challenging the rules before they are finalized.” Rounds said.
Companion legislation already has passed the House.
Rounds already has introduced legislation that would eliminate the Federal Reserve funding stream for the CFPB, an agency he opposes.
He also is sponsoring legislation to require federal financial regulators to take into consideration the risk profile and business models of financial institutions when they issue regulations.
