Senate panel moves forward with bill to roll back Dodd-Frank

Senate panel moves forward with bill to roll back Dodd-Frank
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Republicans and a block of moderate Democrats advanced on Tuesday significant proposed changes to the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.

The Senate Banking Committee approved by a 16 to 7 vote a sweeping bill that would exempt dozens of banks from Dodd-Frank and loosen the rules imposed after the financial crisis on smaller firms.

Banking panel members from both parties sought to strike a bipartisan deal that would win the approval of both Chairman Mike CrapoMichael (Mike) Dean CrapoSenate confirms Trump court pick despite missing two 'blue slips' Senate reignites blue slip war over Trump court picks New push to open banks to marijuana industry MORE (R-Idaho) and ranking member Sherrod BrownSherrod Campbell BrownSherrod Brown on Trump pressuring GM: He 'finally woke up' Congress must break its addiction to unjust tax extenders Appeals court upholds Ohio law to defund Planned Parenthood clinics MORE (Ohio).

After talks between Crapo and Brown collapsed in October, Crapo and the committee’s Republicans joined with nine Democrats to sponsor the Economic Growth, Regulatory Relief and Consumer Protection Act.

The bill would raise the asset threshold at which a bank holding company is considered a “systemically important financial institution” (SIFI) from $50 billion to $250 billion, and exempt all banks with less than $100 billion in assets from federal stress tests immediately.

Democrats sponsoring the bill include Banking Committee members Sens. Joe DonnellyJoseph (Joe) Simon DonnellyOvernight Energy: Trump taps ex-oil lobbyist Bernhardt to lead Interior | Bernhardt slams Obama officials for agency's ethics issues | Head of major green group steps down Trump picks ex-oil lobbyist David Bernhardt for Interior secretary EPA's Wheeler faces grilling over rule rollbacks MORE (Ind.), Heidi HeitkampMary (Heidi) Kathryn HeitkampAnnual scorecard ranks GOP environmental efforts far below Dems in 2018 Overnight Energy: Trump taps ex-oil lobbyist Bernhardt to lead Interior | Bernhardt slams Obama officials for agency's ethics issues | Head of major green group steps down Trump picks ex-oil lobbyist David Bernhardt for Interior secretary MORE (N.D.), Jon TesterJonathan (Jon) TesterSanders, Ocasio-Cortez back 'end the forever war' pledge Dems wrestle over how to vote on ‘Green New Deal’ White House pleads with Senate GOP on emergency declaration MORE (Mont.) and Mark WarnerMark Robert WarnerDems request probe into spa owner suspected of trying to sell access to Trump Live video of New Zealand shooting puts tech on defensive The Hill's Morning Report — Trump readies first veto after latest clash with Senate GOP MORE (Va.), along with Sens. Joe ManchinJoseph (Joe) ManchinManchin says he won't support LGBTQ protection bill as written Senators offer bipartisan bill to fix 'retail glitch' in GOP tax law Murkowski, Manchin call for 'responsible solutions' to climate change MORE (W.Va.), Claire McCaskillClaire Conner McCaskillLobbying world Dem candidate has Hawley served subpoena at CPAC Annual scorecard ranks GOP environmental efforts far below Dems in 2018 MORE (Mo.), Tim KaineTimothy (Tim) Michael KaineDem senator wants Trump to extend immigration protections to Venezuelans Pentagon sends Congress list of projects that could lose funds to Trump's emergency declaration The Hill's Morning Report - 2020 Dems grapple with race, gender and privilege MORE (Va.) and Gary PetersGary Charles PetersDems seeking path to Senate majority zero-in on Sun Belt Lawmakers push to award Aretha Franklin the Congressional Gold Medal Congress sends bill renewing anti-terrorism program to Trump MORE (Mich.), and independent Sen. Angus KingAngus Stanley KingOvernight Defense: Senate rejects border emergency in rebuke to Trump | Acting Pentagon chief grilled on wall funding | Warren confronts chief over war fund budget Shanahan grilled on Pentagon's border wall funding Senators offer bipartisan bill to fix 'retail glitch' in GOP tax law MORE (Maine). Sens. Tom CarperThomas (Tom) Richard CarperDems introduce bill requiring disclosure of guest logs from White House, Trump properties Lobbying world Koch-backed group pushes for new limits on Trump's tariff authority MORE and Christopher CoonsChristopher (Chris) Andrew CoonsSenate Dem calls on Trump to apologize for attacks on McCain Sixteen years later, let's finally heed the call of the 9/11 Commission  Senate Dems introduce bill demanding report on Khashoggi killing MORE (D-Del.) said Tuesday they will also support the bill.

The deal has enough support to overcome a Democratic filibuster, and House Financial Services Committee Chairman Jeb HensarlingThomas (Jeb) Jeb HensarlingThe next two years of federal housing policy could be positive under Mark Calabria Why Ocasio-Cortez should make flood insurance reform a priority Exiting lawmakers jockey for K Street perch MORE (R-Texas) said he’s willing to work with Crapo on a version that could pass the lower chamber.

But the bill is based on a fragile bipartisan balance. The coalition consists of Republicans eager to make whatever rollbacks they can to Dodd-Frank and moderate Democrats up running for reelection in states that supported President Trump in 2016.

Both groups say they’re eager to pare back what they call Dodd-Frank’s excessive burdens on smaller banks while proving to the fractured United States that productive compromise is possible.

A group of liberal Democrats opposed to the bill, including Brown, offered a slew of amendments that the sponsoring coalition voted down.

They offered amendments intended to relieve student loan defaulters, target relief for smaller banks, hold credit reporting agencies to tighter standards and bolster protections for military members abroad.

While some of the Democratic amendments to tighten Dodd-Frank’s oversight of major banks won’t see action, Crapo said several of the defeated amendments could be added to the bill later with changes that would keep the bill passable.

“The bill we are marking up today is the product of a thorough, robust process, and honest, bipartisan negotiations,” Crapo said.

“All of the sponsors have worked in good faith to include provisions from those who have offered them, including those who do not support the bill. And we will continue to do so after this markup.”

Brown said he hoped he would have been able to strike a deal with Crapo, but that the bill rolls back too many critical Dodd-Frank rules that underpin financial stability. He also expressed concerns that Trump’s nominees to federal regulators would take advantage of looser rules and threaten the economy with lax oversight.

“I support providing some relief to small banks and credit unions, but I think this bill unwisely chooses to do so by rolling back protections for people from the very activities that led to the crisis,” Brown said.

“There’s nothing to help people with record-high levels of student loan debt; nothing to help those with underwater mortgages; and nothing to help workers who are struggling to get by.”

Liberals claimed the bill was little more than a wish list for bank lobbyists meant to boost a financial sector already reaping record profits. 

Sen. Elizabeth WarrenElizabeth Ann WarrenDem lawmaker says Electoral College was 'conceived' as way to perpetuate slavery GOP rep to introduce constitutional amendment to limit Supreme Court seats to 9 Warren introduces petition to end the Electoral College MORE (D-Mass.) said she was “disturbed” that her colleagues would consider rolling back financial rules amid the series of scandals exposed at banks such as Wells Fargo.

She, along with Brown, Democratic Sens. Brian SchatzBrian Emanuel Schatz Advocate says Trump administration's new proposal would do 'absolutely nothing' to alleviate student debt Hillicon Valley: Huawei official asks US to ease restrictions | Facebook loses top execs | Defense officials hit Google over China | Pro-Trump 'safe space' app pulled over security flaw | Senators offer bill on facial recognition technology Senators introduce bill to regulate facial recognition technology MORE (Hawaii), Catherine Cortez Masto (Nev.) and Chris Van HollenChristopher (Chris) Van HollenThe Hill's 12:30 Report: Manafort sentenced to total of 7.5 years in prison Hillicon Valley: Google takes heat at privacy hearing | 2020 Dems to debate 'monopoly power' | GOP rips net neutrality bill | Warren throws down gauntlet over big tech | New scrutiny for Trump over AT&T merger Trump faces new scrutiny over AT&T-Time Warner merger MORE (Md.), Jack ReedJohn (Jack) Francis ReedOvernight Defense: Pentagon lists construction projects at risk from emergency declaration | Officials deny report on leaving 1,000 troops in Syria | Spy budget request nears B Pentagon sends Congress list of projects that could lose funds to Trump's emergency declaration Overnight Defense: Senate rejects border emergency in rebuke to Trump | Acting Pentagon chief grilled on wall funding | Warren confronts chief over war fund budget MORE (R.I.) and Bob MenendezRobert (Bob) MenendezThe Hill's 12:30 Report: Manafort sentenced to total of 7.5 years in prison Acting Defense chief calls Graham an 'ally' after tense exchange William Barr is right man for the times MORE (N.J.) opposed the bill and supported several failed Democratic amendments.

Moderate Democrats backing the bill fiercely defended the deal and the means through which it was negotiated. They insisted that the bill would provide meaningful regulatory relief for small, rural banks and credit unions that were facing record levels of consolidation.

“This is going to allow working families to get loans and buy homes,” said Tester, who is up for reelection in 2018 in a state Trump won handily.

“I guarantee you that without this bill the only people that we would be empowering are the big banks.”

Heitkamp, also facing a tight reelection next year, said: “There’s not everything that I would want if I could write this bill and force you all the vote for it.”

But “what people are going to see from this committee room is that this body can function,” Heitkamp added. “That’s something this country desperately needs.”