DS News

8 SENATORS INTRODUCE AMENDMENT TO PREVENT USE OF FAST TRACK TO WEAKEN DODD-FRANK Four Democratic U.S. Senators, Elizabeth Warren (Massachusetts), Jeff Merkley (Oregon), Richard Blumenthal (Connecticut), and Tammy Baldwin (Wisconsin), have introduced an amendment aimed at preventing future admin- istrations from weakening financial regulations, according to an announcement on Warren's website.e amendment would prevent the use of Fast Track authority to pass a trade deal that would stop lawmakers from tearing away at the Dodd-Frank Act, which Republicans have been attempting to do virtually since it was enacted five years ago. "is President supports financial reform– but he cannot stop the next President from cav- ing to the big banks in a future trade deal," War- ren said. "With European officials, Republicans, and giant banks on both sides of the Atlantic pushing hard to undermine financial regulation in the upcoming TTIP agreement, this amend- ment is the best way to ensure that future Presi- dents can't use this fast track bill to undermine Dodd-Frank." Democrats have vowed to protect Dodd- Frank and oppose any legislation that they be- lieve would reduce the controversial Wall Street reform and consumer protection law. "It's no secret that big banks and many European nations are pushing hard to relax financial regulations in upcoming trade negotia- tions," Merkley said. "is amendment is imper- ative to making sure that TPA doesn't become the 'fast track' to chopping away at Dodd-Frank and jettisoning key consumer protections." Warren, an architect of the Consumer Financial Protection Bureau which was created from Dodd-Frank, just last week introduced the Bailout Prevention Act, a bipartisan bill co-sponsored by Senator David Vitter (R- Louisiana) that would limit the Federal Reserve's lending authority and end "too big to fail." On Tuesday, the same day as the amend- ment was introduced, Warren, along with Joe Manchin (D-West Virginia) proposed the Trade Transparency Act, which would require the president to release the text of any trade agree- ment at least 60 days before Congress grants fast track authority for approval of the agreement. "e Trade Transparency Act would ensure that the public, experts, and the press can engage in meaningful debate over the terms of trade deals before Congress reduces its ability to shape, amend, or block those deals," Warren said. "Before Congress ties its hands on trade deals, the American people should be allowed to see for themselves whether these agreements are good for them." BILL PASSES HOUSE WITH AMENDMENT BARRING DOJ FROM FUNDING DISPARATE IMPACT CLAIMS While mortgage industry stakeholders and lawmakers await the U.S. Supreme Court's decision on whether or not so-called disparate impact claims are allowed under the Fair Housing Act, the U.S. House of Representatives passed an amendment barring the Justice Department for using funds to bring about such claims. Rep. Scott Garrett (R-New Jersey), chairman of the House Financial Services Capital Markets and Government Sponsored Enterprises Subcommittee, proposed the amendment to H.R.2578, known as the Fiscal Year 2016 Commerce, Justice, and Science Appropriations Act, sponsored by Rep. John Abney Culberson (R-Texas) and introduced on May 27. e act, including Garrett's amendment, passed largely among party lines by a vote of 242 to 173 with only 12 Democrats voting in favor and only 10 Republicans voting against. e disparate impact issue has become a heated one in the last few years, particularly in housing. e rule allowing disparate impact claims, which are allegations made based on neutral practices that may have a discriminatory effect, was passed by the Obama administration in February 2013. In early November 2014, U.S. District Judge Richard Leon struck down the disparate impact rule, saying that only claims of direct, intentional discrimination could be made under the Fair Housing Act. A case involving a disparate impact claim, Texas Department of Housing and Community Affairs v. Inclusive Communities Project, Inc., was argued in the U.S. Supreme Court on January 21. e case centers on allegations that tax credits were awarded to real estate developers who own property in low-income minority dominated neighborhoods and denied to developers who own property in predominantly white neighborhoods. e Supreme Court is expected to make a ruling this month. "While everyone agrees that discrimination has no place in the lending practices of any respectable institution, the application of disparate impact theory has had devastating impacts on law-abiding businesses who have diligently maintained fair and consistent lending standards," Garrett said after H.R. 2578 passed along with his amendment. "e federal government should be encouraging sound business practices, not punishing those that utilize them. I thank my colleagues for taking a stand for small businesses and reinstating equal protection under the laws as guaranteed in our Constitution by the 14th Amendment." With the Obama administration backing the disparate impact rule, the bill is likely to meet opposition from the White House if it passes the Senate. e purpose of H.R. 2578 is to provide "FY2016 appropriations to the Department of Commerce; the Department of Justice (DOJ); science agencies, including the National Aeronautics and Space Administration (NASA) and the National Science Foundation (NSF); and several related agencies." Congressman Scott Garrett

• Cover