On January 14th, the House passed H.R. 37 “Promoting Job Creation and Reducing Small Business Burdens Act.” Although passed with some support from the Democrats (29 votes, which in these days of hyper-partisanship is practically a bipartisan bill), the White House issued a veto threat on January 12th because the bill also delays part of the Volker Rule effectiveness until July 21, 2019. Thus, in its current form, it looks dead on arrival, but there are some interesting ideas that I support and will hopefully make it in a revised bill later in the term:
- Delays the requirement for savings and loan holding companies to register under the Securities Exchange Act of 1934 to the same extent as bank holding companies (assets of $10 million and class of equity securities held of record by 2,000 or more persons). Also allows deregistration for savings and loan holding companies when they have fewer than 1200 shareholders of record. This seems fair and was likely an unintended distinction made when the JOBS Act passed. Unfortunately, this innocuous bill was grouped with the Volker delay.
- Provides for an exemption from the Securities Exchange Act of 1934 for certain business brokers. The bill provides for some restrictions such as