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Senate committee moves toward easing regulation of small banks

Jim Puzzanghera, Los Angeles Times on

Published in Business News

That bill, for example, would eliminate the designation of any financial institution as systemically important, scrap the trading restrictions known as the Volcker Rule and gut the authority of the Consumer Financial Protection Bureau.

The House bill is more in line with the aggressive deregulatory approach of President Donald Trump, who has called Dodd-Frank "a very negative force" in the economy and promised during his campaign last year dismantle it.

But strong Democratic opposition to major revisions in Dodd-Frank, one of the signature accomplishments of President Barack Obama, means the House bill is highly unlikely to pass the Senate.

Some Senate Republicans said they supported Crapo's bill but wanted it to cut regulations further. Sen. Patrick Toomey, R-Pa., called it "mostly modest but constructive movement to lighten the burden of excessive and unnecessary regulation."

He opposes the designation of financial institutions as systemically important. If the requirement is not repealed, Toomey said he'd prefer the designation be made case by case instead of being tied to an "arbitrary threshold."

 

The bill's limited reach led several moderate Democrats to sign on. They said the bipartisan process of drafting it was a stark contrast to the major tax bill approved last week by the Senate, which was written only by Republicans and received no Democratic votes.

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