Hoyer to oppose Dodd-Frank change

House Minority Whip Steny Hoyer (Md.) will vote against legislation that would delay a critical rule in the Wall Street reform bill for two years, according to an aide to the Democratic leader.

The financial services industry had been hoping Hoyer and his Congressional supporters in the House would buck the administration and support Republicans on the bill, which will receive a vote on Wednesday.

{mosads}The bill would delay the implementation of the Volcker Rule, named after former Fed chairman Paul Volcker. It requires that big banks sell off financial investments known as Collateralized Debt Obligations (CLOs) — bundles of investments that liberals argue are risky and in need of more oversight.

“He will vote against the bill because he’s opposed to the Volcker rule change and has concerns that this legislation was brought to the floor without any hearings or committee markup,” a Hoyer aide told The Hill.

The White House has threatened to veto the legislation, and Sen. Elizabeth Warren (D-Mass.) and House Minority Leader Nancy Pelosi (D-Calif.) are urging Democrats to oppose it, even though many House Democrats supported it in the last Congress.

Republicans and centrist Democrats say that CLOs help small businesses as well as big banks gain access to capital.