Editor's Note: This is an excerpt from an institutional research note written by Hedgeye Potomac's Chief Political Strategist JT Taylor and David Hoppe, former Chief of Staff to House Speaker Paul Ryan. To read our institutional research email sales@hedgeye.com.
House leadership and the Financial Services Committee did answer a big question recently. They have cleared the way for floor consideration this week of the Choice 2.0 legislation to reform the Dodd-Frank bill passed in 2010.
It was decided to take out the section that would revoke the Durbin amendment that sets swipe card fees. This avoids a fight (for now) between the retail industry and the bankers.
Since the Choice Act must be done under regular order, it would not be possible for the bill to pass in the Senate with language revoking the Durbin amendment in it. With the Durbin amendment no longer an issue all that is necessary is to get Senate Democrats to agree to repeal most of the Dodd-Frank law – and it goes without saying that that is a very high hurdle.
Don't look for the House Choice Act, if it passes the first week of June, to come to the floor very soon in the Senate.
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Click here, here and here to read other significant policy discussions analyzed by Taylor and Hoppe.
