Banks: Senate seeks to weaken Dodd-Frank
Republicans in the Senate, with support from some Democrats, moved ahead this week with an effort to scale back the sweeping financial regulations passed in the aftermath of the financial crisis, said Aimee Picchi in CBSNews.com. Their proposed bill, sponsored by Sen. Mike Crapo (R-Idaho), would weaken rules created under the 2010 Dodd-Frank financial reform law—raising the threshold for “too big to fail” banks from $50 billion to $250 billion and exempting about two dozen financial firms from capital and liquidity rules and the highest level of Federal Reserve oversight. Sen. Elizabeth Warren (D-Mass.), the bill’s key opponent, called the proposed changes “a punch in the gut” to U.S. consumers.
Democrats are “sharply split” over rolling back Dodd-Frank, said Jim Puzzanghera in the Los Angeles Times. But “after years of complaints from bankers in their states,” more than a dozen Democrats joined their Republican colleagues in voting to advance the bill, citing the need for “sensible revisions” to onerous banking rules. The provisions designed to ease burdens on smaller banks, including reducing mortgage regulations, enjoy nearly unanimous support. But Democrats remain divided over changes that would weaken oversight of midsize banks. If the bill passes the Senate, it moves to the House, where Republicans are “expected to accept it.”