Senate closer to easing Dodd-Frank law
WASHINGTON — The Senate advanced legislation Tuesday to scale back some of the safeguards Congress put in place to prevent a repeat of the financial crisis. Enough Democrats supported a procedural vote on the bipartisan bill to show it has a good chance of passage in the coming days.
The move to alter some key aspects of the Dodd-Frank law comes 10 years after the financial crisis rocked the nation's economy. The bill has overwhelming Republican support and enough Democratic backing that it's expected to gain the 60 votes necessary to clear the Senate. That was reflected in the 67-32 vote Tuesday, with 16 Democrats and one independent voting to move ahead with consideration of the bill.
Several Democratic lawmakers facing tough reelection races this year have broken ranks with Minority Leader Chuck Schumer, DN.Y., and Sen. Elizabeth Warren, D-Mass.
Sen. Jon Tester, D-Mont., said he was proud to support Dodd-Frank eight years ago, but the bill had unintended consequences, which he said included consolidation in the banking industry and a decline in small-business lending. He said local banks in Montana have suffered from regulations designed to rein in Wall Street.
Nonpartisan congressional analysts say the legislation would slightly increase the probability of a big bank failure.
The Congressional Budget Office estimates the bill would increase federal deficits by $671 million between 2018 and 2027 if it became law.
“Dodd-Frank's enormous regulatory burden has been inefficient and unhelpful for financial institutions of all sizes, but it has hit Main Street lenders especially hard,” Senate Majority Leader Mitch McConnell said.