The U.S. House of Representatives passed a bill to expand the ability of banks to treat municipal securities as high-quality liquid assets.
A bipartisan group of more than 150 House Representatives urged the House Committee on Ways & Means to recognize "the vital role of tax-exempt municipal bonds" when considering changes to their tax-exempt status.
Treasury Secretary Jacob Lew testified that "the financial system [is] safer, more resilient, and supportive of long-term economic growth" as a result of the creation of the Financial Stability Oversight Council.
Members of the House Subcommittee on Capital Markets and Government-Sponsored Enterprises heard testimony on (i) a FINRA registration proposal, (ii) the money market fund rule, (iii) bond market transparency and liquidity, (iv) the Treasury trade reporting proposal, (v) the "materiality" standard, and (vi) the Public Company Accounting Oversight Board.
The U.S. House of Representatives passed a bill requiring federal banking regulators to include municipal bonds under the Liquidity Coverage Ratio Final Rule.