House panel to consider Dodd-Frank replacement

House panel to consider Dodd-Frank replacement

A House committee is set to consider a Republican alternative to the Dodd-Frank financial reform law.

Chairman Jeb Hensarling (R-Texas) on Thursday announced that his House Financial Services Committee will debate his legislation, known as the Financial CHOICE Act, on Sept. 13.

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With just weeks left in the current Congress and Democrats fiercely opposed to the bill, it faces long odds. But if Donald TrumpDonald John TrumpTrump suggests some states may 'pay nothing' as part of unemployment plan Trump denies White House asked about adding him to Mount Rushmore Trump, US face pivotal UN vote on Iran MORE wins the White House, many observers believe Hensarling’s plan could serve as a starting point for GOP efforts to overhaul Wall Street regulations.

Trump himself has not yet proposed a plan for regulating the financial sector, but has been critical of Dodd-Frank, enacted in 2010.

Hensarling’s proposal is far-reaching, and would make significant changes to many key aspects of the Wall Street reform law, which was passed in the wake of the financial crisis.

The bill would allow some large banks to largely avoid many Dodd-Frank rules by raising how much capital they keep on their books as a cushion against losses. It would significantly curtail the activities of regulators and bring them under closer scrutiny from Congress, and huge sections of the law would be repealed outright.

The measure also includes several provisions aimed at providing relief to community banks, which have struggled to comply with all the Dodd-Frank requirements.