Fairness for Community Job Creators Act Introduced to Fix Harmful Volcker Rule Provision

Press Release

Financial Institutions and Consumer Credit Subcommittee Chairman Shelley Moore Capito (R-WV) and Financial Services Committee Chairman Jeb Hensarling (R-TX) today introduced the Fairness for Community Job Creators Act, legislation that fixes a provision in the Volcker Rule that harms community banks.

The Fairness for Community Job Creators Act, H.R. 3819, will provide certainty and clarity about the impact of the Volcker Rule's inclusion of certain types of collateralized debt obligations.

"This targeted legislation prevents community banks from being forced to take considerable losses on investments they intend to hold to maturity. Avoiding these arbitrary losses will allow local financial institutions to continue to recover and help nurture the small businesses in their communities," Chairwoman Capito said.

Chairman Hensarling said, "For more than three years, those who support the Dodd-Frank Act assured community banks they would not be harmed by the Volcker regulations. Then, in the dark of night, suddenly Washington regulators at the last minute changed the rules and included these products in the Volcker regulations with no time for public comment or review. That's unfair and it will do nothing but undermine the ability of small businesses that create jobs and other bank customers to receive loans from their financial institutions."

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