Advocacy groups believe rules finalized after mid to late August should qualify for repeal, although Congress has yet to issue a formal determination on the CRA cut-off date.
Here are some potential candidates:
FAIR ACCESS RULE
A top Democratic target is a contentious rule finalized in January which would bar lenders from refusing to do business with certain sectors, like oil and gas companies or gunmakers.
The Office of the Comptroller of the Currency (OCC) finalized the rule at high speed, despite strong opposition. Banks have called the proposal "unworkable" and "political," while Democrats have said it is improper to prevent lenders from making risk-based assessments about which industries to work with.
ILC SPECIAL CHARTERS
Another measure that has banks and Democrats equally worried is a December Federal Deposit Insurance Corporation (FDIC) rule laying out the requirements for non-banks to secure an "industrial loan company" charter. Banks and consumer advocates alike have opposed such charters for years, arguing they pave the way for under-regulated companies, particularly tech firms, to offer banking services, putting consumers and the financial system at risk.
BROKERED DEPOSITS
On the same day, the FDIC narrowed its definition of brokered deposits - deposits placed with a bank via an intermediary.
Such deposits are a riskier source of funds compared to core deposits, leading critics to argue the regulatory relief could reduce banking system safety and soundness. The FDIC said the rules needed modernizing given the rise in bank partnerships with fintech companies.
TRUE LENDER
The OCC's October "true lender" rule clarifies which party's regulatory regime applies when banks team-up with non-banks to make loans. The OCC says the rule clarifies a murky legal matter. But Democrats argue it will allow predatory lenders to skirt state consumer protections and usury laws by partnering with banks whose looser federal regulations pre-empt state rules.
DEBT COLLECTION
Consumer groups and Democrats say the Consumer Financial Protection Bureau's (CFPB's) October rule on debt collection communication effectively gives debt-collectors free reign to harass consumers with unlimited text messages and emails.
POSITION LIMIT RULES
The Commodity Futures Trading Commission voted in October to cap speculative bets in the commodities markets by limiting the number of contracts that an institution can amass.
The rule aims to prevent price swings that don't reflect underlying supply-and-demand dynamics. Both of the agency's Democratic commissioners dissented, however, saying it gives too much authority to futures exchanges.
SHAREHOLDER RIGHTS
In September, the Securities and Exchange Commission (SEC) raised the bar for submitting shareholder proposals to companies' annual meetings, saying the rules needed to be updated to stop fringe issues clogging up corporate ballots.
The changes sparked blowback from investors, lawmakers, and the SEC's Democratic commissioners, who said it would make it harder for shareholders to push companies to address climate change, racial justice, and the COVID-19 pandemic - priorities for the Biden administration.
LABOR DEPT. RULES
Similarly, the Department of Labor in October and December finalized a pair of rules that critics said would limit pension fund investments focusing on environmental, social and governance factors, something Democrats want to promote.
AUDITOR INDEPENDENCE
In October, the SEC gave auditors more discretion when assessing conflicts of interest with the companies they vet. Critics, including the SEC's Democratic commissioners, said the changes ultimately increase the risks to investors.
FUND DERIVATIVES
Also in October, the SEC rationalized a patchwork of rules on investment funds' use of derivatives. Democrats slammed the rule for expanding the permissible leverage risk a fund may take while dropping important investor disclosures about that risk.
(Reporting by Pete Schroeder and Katanga Johnson; Editing by Andrea Ricci)
By Katanga Johnson and Pete Schroeder
