H.R. 3093 would amend current law, known as the “Volker Rule,” to allow certain types of financial firms—hedge funds and private equity funds (known as “covered funds” under the rule)—to have the same name as an insured depository institution or its affiliate. As a result, the federal banking regulators—the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Federal Reserve—along with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC)—would be required to revise current regulations concerning allowable naming conventions.
Direct Spending and Revenues
Costs incurred by the FDIC and the OCC are recorded in the budget as an increase in direct spending. CBO expects that each agency would need one or two full-time employees to complete the rule-making. Those two agencies are authorized to collect premiums and fees from insured depository institutions to cover administrative expenses. CBO expects that they would do so to recover any costs associated with amending current regulations under the bill. Costs to the Federal Reserve System are reflected on the federal budget as a reduction in remittances to the Treasury (which are recorded in the budget as revenues). CBO estimates that any additional administrative costs to the Federal Reserve under the bill would be insignificant.