House 229-122 Clears Bill To Limit Dodd-Frank `Push-Out’ Clause

By a vote of 229-122, the House Oct. 30 cleared the Swaps Regulatory Improvement Act (H.R. 992), a bill that would that would repeal most of the “push-out clause” set out in Section 716 of the Dodd-Frank Wall Street Reform and Consumer Protection Act by expanding the types of swaps activities in which banks could participate and still retain access to federal depository assistance.

The bill, sponsored by Rep. Randy Hultgren (R-Ill.), also would exempt U.S. branches of foreign banks from Section 716. The provision was intended to encourage banks to establish affiliate swap entities in which to engage in ...