Congress took a final step on Tuesday towards dismantling a chunk of the rules framework for banks that was installed to prevent a recurrence of the 2008 financial crisis.
The House plans to approve legislation to roll back the Dodd-Frank law, easing rules for banks and notching a legislative win for United States President Donald Trump, who made gutting the landmark law a campaign promise.
The Republican legislation, pushed by Wall Street banks, regional banks and smaller institutions, carries bipartisan support. The bill splintered Democrats into two camps when the Senate voted 67-31 to approve it in March. Republicans, who had uniformly opposed Dodd-Frank in 2010, unanimously voted for the Senate bill.
The bill will increase the threshold at which banks are deemed so big and plugged into the financial grid that if one were to fail it would cause major havoc. Those banks are subject to stricter capital and planning requirements. Backers of the legislation are intent on loosening the restraints on them, asserting it would boost lending and the economy.
The legislation is aimed at especially helping small and medium-sized banks, including community banks and credit unions. But critics argue that the likelihood of future taxpayer bailouts will be greater once it becomes law. They point to increases in banks’ lending and profits since Dodd-Frank’s enactment as debunking the assertion that excessive regulation of the banking industry is stifling growth.
The bill “will increase risky banking practices by the nation’s biggest banks,” the US Public Interest Research Group said in a letter to House members. “To call it a bill for community banks and credit unions is wrong.”
There would be a five-fold increase, to US$250 billion (Dh918bn), in the level of assets at which banks are deemed to pose a potential threat if they fail. The change would ease regulations and oversight on more than two dozen financial institutions, including BB&T Corp, SunTrust Banks, Fifth Third Bancorp and American Express.
Eventually, the exempted banks would no longer have to undergo an annual stress test conducted by the Federal Reserve. The test assesses whether a bank has a big enough capital buffer to survive an economic shock and keep on lending. The banks would also be excused from submitting plans called “living wills” that spell out how a bank would sell off assets or be liquidated in the event of failure so it won’t create chaos in the financial system.
“This will drive down the cost of borrowing,” Republican Luke Messer said on the House floor before to the vote.
After the bill cleared the Senate in March, its backers trod a line of trying to appease GOP politicians in the House, who pushed for deeper financial deregulation, without losing the support of the core group of Democratic senators who voted for the bill. After weeks of wrangling, the House politicians agreed to vote on the Senate version.
Mr Trump is likely eager to sign the bill after the House sends it to him. “We’re going to be doing a big number on Dodd-Frank,” he promised just weeks after taking office, complaining that the regulations choked lending, cramped the economy and hampered job creation.
The win on the banking bill adds to the president’s marquee business-friendly legislative achievement - the sweeping tax bill enacted late last year that deeply cut taxes for corporations and wealthy individuals and offered more modest reductions for most ordinary Americans.
Supporters of the bill say Dodd-Frank was too blunt an instrument in response to the financial crisis, in which millions lost jobs and homes. They say it hurt smaller lenders that played no role in the debacle and which provided more than half the small business loans and more than 80 per cent of agricultural loans.
The legislation will also exempt certain banks and credit unions from requirements to report some mortgage loan data. The exempted data includes the age of a loan applicant, credit score, total loan costs and interest rate. Critics say that will make it easier for banks to discriminate against minorities seeking home mortgages and to go undetected.
In response to the Equifax breach that exposed personal information for more than 145 million Americans, the bill will require free credit freezes for all consumers affected by data breaches. Currently most states allow the credit reporting companies to charge consumers a fee for freezing their credit.
Backers of the legislation note that the Federal Reserve will still have the authority to apply tougher standards for banks with $100 billion to $250 billion in assets.
Kill
Director: Nikhil Nagesh Bhat
Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal
Rating: 4.5/5
How the bonus system works
The two riders are among several riders in the UAE to receive the top payment of £10,000 under the Thank You Fund of £16 million (Dh80m), which was announced in conjunction with Deliveroo's £8 billion (Dh40bn) stock market listing earlier this year.
The £10,000 (Dh50,000) payment is made to those riders who have completed the highest number of orders in each market.
There are also riders who will receive payments of £1,000 (Dh5,000) and £500 (Dh2,500).
All riders who have worked with Deliveroo for at least one year and completed 2,000 orders will receive £200 (Dh1,000), the company said when it announced the scheme.
ARABIAN GULF LEAGUE FIXTURES
Thursday, September 21
Al Dahfra v Sharjah (kick-off 5.35pm)
Al Wasl v Emirates (8.30pm)
Friday, September 22
Dibba v Al Jazira (5.25pm)
Al Nasr v Al Wahda (8.30pm)
Saturday, September 23
Hatta v Al Ain (5.25pm)
Ajman v Shabab Al Ahli (8.30pm)
More from Neighbourhood Watch:
CHATGPT ENTERPRISE FEATURES
• Enterprise-grade security and privacy
• Unlimited higher-speed GPT-4 access with no caps
• Longer context windows for processing longer inputs
• Advanced data analysis capabilities
• Customisation options
• Shareable chat templates that companies can use to collaborate and build common workflows
• Analytics dashboard for usage insights
• Free credits to use OpenAI APIs to extend OpenAI into a fully-custom solution for enterprises
The specs
Engine: 1.8-litre 4-cyl turbo
Power: 190hp at 5,200rpm
Torque: 320Nm from 1,800-5,000rpm
Transmission: Seven-speed dual-clutch auto
Fuel consumption: 6.7L/100km
Price: From Dh111,195
On sale: Now
Zayed Sustainability Prize
The specs: 2024 Mercedes E200
Engine: 2.0-litre four-cyl turbo + mild hybrid
Power: 204hp at 5,800rpm +23hp hybrid boost
Torque: 320Nm at 1,800rpm +205Nm hybrid boost
Transmission: 9-speed auto
Fuel consumption: 7.3L/100km
On sale: November/December
Price: From Dh205,000 (estimate)
Company Profile
Company name: Cargoz
Date started: January 2022
Founders: Premlal Pullisserry and Lijo Antony
Based: Dubai
Number of staff: 30
Investment stage: Seed
SPECS
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
KEY HIGHLIGHTS
Healthcare spending to double to $2.2 trillion rupees
Launched a 641billion-rupee federal health scheme
Allotted 200 billion rupees for the recapitalisation of state-run banks
Around 1.75 trillion rupees allotted for privatisation and stake sales in state-owned assets
PREMIER LEAGUE FIXTURES
Saturday (UAE kick-off times)
Watford v Leicester City (3.30pm)
Brighton v Arsenal (6pm)
West Ham v Wolves (8.30pm)
Bournemouth v Crystal Palace (10.45pm)
Sunday
Newcastle United v Sheffield United (5pm)
Aston Villa v Chelsea (7.15pm)
Everton v Liverpool (10pm)
Monday
Manchester City v Burnley (11pm)
The Roundup : No Way Out
Director: Lee Sang-yong
Stars: Don Lee, Lee Jun-hyuk, Munetaka Aoki
Rating: 3/5
The specs: 2018 Maxus T60
Price, base / as tested: Dh48,000
Engine: 2.4-litre four-cylinder
Power: 136hp @ 1,600rpm
Torque: 360Nm @ 1,600 rpm
Transmission: Five-speed manual
Fuel consumption, combined: 9.1L / 100km
SERIES SCHEDULE
First Test, Galle International Stadium
July 26-30
Second Test, Sinhalese Sports Club Ground
August 3-7
Third Test, Pallekele International Cricket Stadium
August 12-16
First ODI, Rangiri Dambulla International Stadium
August 20
Second ODI, Pallekele International Cricket Stadium
August 24
Third ODI, Pallekele International Cricket Stadium
August 27
Fourth ODI, R Premadasa Stadium
August 31
Fifth ODI, R Premadasa Stadium
September 3
T20, R Premadasa Stadium
September 6
Company Profile
Name: HyveGeo
Started: 2023
Founders: Abdulaziz bin Redha, Dr Samsurin Welch, Eva Morales and Dr Harjit Singh
Based: Cambridge and Dubai
Number of employees: 8
Industry: Sustainability & Environment
Funding: $200,000 plus undisclosed grant
Investors: Venture capital and government
Ain Issa camp:
- Established in 2016
- Houses 13,309 people, 2,092 families, 62 per cent children
- Of the adult population, 49 per cent men, 51 per cent women (not including foreigners annexe)
- Most from Deir Ezzor and Raqqa
- 950 foreigners linked to ISIS and their families
- NGO Blumont runs camp management for the UN
- One of the nine official (UN recognised) camps in the region
The new Turing Test
The Coffee Test
A machine is required to enter an average American home and figure out how to make coffee: find the coffee machine, find the coffee, add water, find a mug and brew the coffee by pushing the proper buttons.
Proposed by Steve Wozniak, Apple co-founder
COMPANY PROFILE
Name: N2 Technology
Founded: 2018
Based: Dubai, UAE
Sector: Startups
Size: 14
Funding: $1.7m from HNIs
CONFIRMED LINE-UP
Elena Rybakina (Kazakhstan)
Ons Jabeur (Tunisia)
Maria Sakkari (Greece)
Barbora Krejčíková (Czech Republic)
Beatriz Haddad Maia (Brazil)
Jeļena Ostapenko (Latvia)
Liudmila Samsonova
Daria Kasatkina
Veronika Kudermetova
Caroline Garcia (France)
Magda Linette (Poland)
Sorana Cîrstea (Romania)
Anastasia Potapova
Anhelina Kalinina (Ukraine)
Jasmine Paolini (Italy)
Emma Navarro (USA)
Lesia Tsurenko (Ukraine)
Naomi Osaka (Japan) - wildcard
Emma Raducanu (Great Britain) - wildcard
Brief scores:
Toss: Northern Warriors, elected to field first
Bengal Tigers 130-1 (10 ov)
Roy 60 not out, Rutherford 47 not out
Northern Warriors 94-7 (10 ov)
Simmons 44; Yamin 4-4
Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5
COMPANY PROFILE
Company name: Klipit
Started: 2022
Founders: Venkat Reddy, Mohammed Al Bulooki, Bilal Merchant, Asif Ahmed, Ovais Merchant
Based: Dubai, UAE
Industry: Digital receipts, finance, blockchain
Funding: $4 million
Investors: Privately/self-funded
The specs
Engine: Dual permanently excited synchronous motors
Power: 516hp or 400Kw
Torque: 858Nm
Transmission: Single speed auto
Range: 485km
Price: From Dh699,000
THE BIO
Bio Box
Role Model: Sheikh Zayed, God bless his soul
Favorite book: Zayed Biography of the leader
Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet
Favorite food: seafood
Favorite place to travel: Lebanon
Favorite movie: Braveheart
Russia's Muslim Heartlands
Dominic Rubin, Oxford
The five pillars of Islam
UAE currency: the story behind the money in your pockets