Senate passes bill easing Dodd-Frank

Opponents say measure caters to banks that contributed to ’08 crisis

Washington — The Senate passed bipartisan legislation Wednesday designed to ease bank rules that were enacted to prevent a relapse of the 2008 financial crisis that caused millions of Americans to lose their jobs and homes.

The Senate voted 67-31 for a bill from Republican Senator Mike Crapo of Idaho that would dial back portions of the law known as Dodd-Frank.

The legislation would increase the threshold at which banks are considered so big and plugged into the financial grid that if one were to fail, it would cause major havoc. Those banks are subject to stricter capital and planning requirements. Lawmakers are intent on loosening the restraints on them in hopes that it will boost lending and the economy.

President Donald Trump signaled that he’ll sign the bill. Dismantling Dodd-Frank was one of his campaign pledges.

“The bill provides much-needed relief from the Dodd-Frank Act for thousands of community banks and credit unions, and will spur lending and economic growth without creating risks to the financial system,” the White House said in a statement after the vote.

Republicans unanimously supported the bill, while Democrats splintered into two camps. One included several senators from rural states who worked out the compromise with Crapo. The other, led by Sens. Elizabeth Warren of Massachusetts and Sherrod Brown of Ohio, said the bill catered too much to the banks that contributed to the financial crisis and would increase the likelihood of future taxpayer bailouts.

“Big banks and their lobbyists are about to score a touchdown at the expense of hardworking families across the country,” Brown said shortly before the vote.

The bill makes a fivefold increase, to $250 billion, in the level of assets at which banks are deemed to pose a potential threat if they were to fail. The change would ease regulations and oversight on more than two dozen financial companies, including BB&T Corp., SunTrust Banks and American Express.

Senate Majority Leader Mitch McConnell, R-Ky., said Dodd-Frank proved to be “too blunt” an instrument. He said it hurt smaller lenders who provide more than 50 percent of small business loans and more than 80 percent of agricultural loans.