Photo Credit: Mark Wilson/Getty Images North America
WASHINGTON D.C. — While Former FBI Director James Comey testified in front of the Senate Intelligence Committee, the U.S. House of Representatives quietly voted Thursday to repeal the Dodd-Frank Act of 2010 that put heavy regulations on banks designed to prevent another system collapse like the 2008 one.
Under the new bill, banks would be able to be exempted from the regulations if they increased their emergency financial cushions, giving them more breathing space if they were to run into trouble again. It also removes most of the power held by the Consumer Financial Protection Bureau.
The bill, titled the Financial Choice Act, has little chance of passing the Senate without serious changes to it, but it is still a sign of life for the Trump Administration’s agenda, which has appeared stalled with the Russia investigation.
According to various congressional Democrats, the bill would allow the conditions for the next financial crisis to develop. Democrats also say that the banking industry needs more regulation, not less.
“This bill is a vehicle for Donald Trump’s agenda to deregulate and help out Wall Street,” Rep. Maxine Waters, the ranking Democrat on the Financial Services Committee said on the floor before the vote. “Here’s the bottom line: Donald Trump and the Republicans want to open the door to another economic catastrophe like the Great Recession and return us to a financial system where reckless and predatory practices harm our families and communities.”
The bill will now be sent to the Senate, which will refer it to a committee and begin the process of getting it to passage.