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A proposal to allow more small banks to avoid SEC registration will be highlighted by the Senate Banking Committee on Thursday — a sign that the issue has become a priority on Capitol Hill.
November 30
WASHINGTON — Senate Democrats Tuesday failed in an attempt to scale back a bill meant to ease the path for small banks to raise new capital.
The industry has supported proposed legislation allowing banks to avoid registration with the Securities and Exchange Commission if they have fewer than 2,000 shareholders. Currently, the threshold is 500 shareholders.
Democrats Jack Reed, Carl Levin and Mary Landrieu had put forward an amendment that would establish the threshold for filing with the SEC at 750 shareholders. Although the Senate, by a 54-to-45 margin, supported a motion to allow a vote on the amendment, that was six votes shy of what was required to pass the motion.
