Shelby aims to attach financial regs overhaul to spending bill

Senate Banking Committee chairman Richard Shelby (R-Ala.) is looking to attach sweeping legislation to overhaul financial regulations to an appropriations bill that a Senate subcommittee is scheduled to take up for consideration on Wednesday.

Sen. John Boozman (R-Ark.) will likely include Shelby’s proposal in the Financial Services and General Government Appropriations Bill that is slated for a Wednesday mark-up, according to two sources familiar with the plans.

“We expect this bill to be the same or substantially similar to the Senate Banking Committee passed bill,” said one financial services source familiar with the plan. “Further, we expect an attempt to remove the language Thursday at full committee. Our understanding is the votes are there on the majority side to prevent its removal.”

Shelby has been tight-lipped about his proposal, which would reflect the biggest regulatory update in the financial sector since passage of the 2010 Dodd-Frank Wall Street Reform law five years ago. Democrats oppose the plan.

The bill would allow for more community and regional banks to be excluded from regulations that are part of Dodd-Frank, while aiming to provide regulatory relief for businesses.

“Senator Shelby views this action as a way to continue to move the process forward by putting the legislation squarely in the end of year fiscal discussions,” one source said.

Spokespersons for Shelby and Boozman could not be immediately reached for comment.

The vote comes during the week of the fifth anniversary of Dodd-Frank, which Republicans argue has stunted economic growth.

In May, the Senate Banking Committee approved the package on a party-line 12-10 vote. Sen. Sherrod Brown (D-Ohio), the top Democrat on the committee, derided the bill at the time as a “one-sided [industry] wish list.”