White House says Trump will sign bill rolling back Dodd-Frank banking regulations
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Thirty-three Democrats joined all but one Republican in the House on Tuesday to pass a bill rolling back banking regulations passed in 2010 to prevent bank practices that could lead to their collapse.
The bill now goes to President Donald Trump, who plans to sign it, according to White House officials. The New York Times, the Washington Post and the Wall Street Journal have coverage.
The Times describes the bill this way: “The bill stops far short of unwinding the toughened regulatory regime put in place to prevent the nation’s biggest banks from engaging in risky behavior, but it represents a substantial watering down of Obama-era rules governing a large swath of the banking system.
“The legislation will leave fewer than 10 big banks in the United States subject to stricter federal oversight, freeing thousands of banks with less than $250 billion in assets from a post-crisis crackdown that they have long complained is too onerous.”
According to the Journal, the bill “sends a strong signal to regulators that Congress wants a more tailored rulebook, with looser reins for small and midsize lenders.” Currently the threshold for tighter oversight is $50 billion in assets. Any banks viewed as risky would also be subject to the stricter rules.
The bill allows small and medium-sized banks to avoid “stress tests” that gauged their ability to withstand a severe economic downturn. It also generally exempts banks that originate fewer than 500 mortgages a year from requirements to report some racial and income data.
The bill does not change government powers to take over ailing banks, nor does it repeal restrictions on derivatives.
Supporters say the bill will spur more lending and provide relief for banks hampered by the regulations. Opponents say it could lead to banks taking risks that could harm the financial system.
Restores dropped word in third paragraph at 10:23 a.m.
