Senate Passes Rollback of Dodd-Frank Banking Law

A for-sale sign advertises a townhouse in Northeast Washington

A for-sale sign advertises a townhouse in Northeast Washington

Those changes have some of the bill's backers anxious that late alterations could upend the deal struck in the Senate between Republicans and Democrats.

The Senate bill, sponsored by Senate Banking Committee Chairman Mike Crapo (R-ID), would exempt small and community banks from more onerous financial regulation.

Democrats were split on the bill, with liberal Senator Elizabeth Warren leading the charge against it and branding the legislation a gift to Wall Street. The measure was long expected to pass the Senate, but triggered a fierce battle between the bills' Democratic sponsors and progressive critics. "The side of special interests and Wall Street, or taxpayers and homeowners and students and workers?" said Sen.

The bill now heads to the U.S. House of Representatives, which must pass it before it can signed into law. "By tailoring regulation, the bill seeks to prevent excessive regulation from undermining the viability of local and regional banks and their ability to serve their communities".

And the bill eliminates a ban on banks with less than $10 billion in assets from being involved in certain types of trading, while also putting in place lesser capital requirements for banks of the same size.

In the House, conservative Republicans say they want to expand the bill to include additional regulatory relief, identifying roughly 30 bills they have already passed for inclusion.

The amended measure clarifies that foreign banks with US holdings less than $250 billion but above that level in foreign assets would still be subject to closer oversight.

Congress approved Dodd-Frank in response to the financial crisis of 2008 and the legislation became one of the hallmarks of former President Barack Obama's legacy during his tenure in office. "The president looks forward to discussing any further revisions the House is interested in making, with the goal of bipartisan, pro-growth Dodd-Frank relief reaching his desk as soon as possible". Conservatives that spearheaded the House's 2017 bill to rewrite Dodd-Frank want to add several measures meant to take a bigger chunk out of the law.

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