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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 CrapoLawmakers, Wall Street shrug off Trump's escalating Fed attacks GOP loads up lame-duck agenda as House control teeters Republicans shift course after outside counsel falters MORE (R-Idaho) and ranking member Sherrod BrownSherrod Campbell BrownOn The Money: Deficit hits six-year high of 9 billion | Yellen says Trump attacks threaten Fed | Affordable housing set for spotlight in 2020 race Lawmakers, Wall Street shrug off Trump's escalating Fed attacks The Hill's Morning Report — Presented by PhRMA — Dem victories in `18 will not calm party turbulence 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 DonnellyConservatives bankrolled and dominated Kavanaugh confirmation media campaign Donnelly parodies 'Veep' in new campaign ad Election Countdown: Florida Senate fight resumes after hurricane | Cruz softens ObamaCare attacks | GOP worries Trump will lose suburban women | Latest Senate polls | Rep. Dave Brat gets Trump's 'total endorsement' | Dem candidates raise record B MORE (Ind.), Heidi HeitkampMary (Heidi) Kathryn HeitkampOvernight Health Care — Presented by Purdue Pharma —Senate debates highlight fight over pre-existing conditions | Support grows for Utah Medicaid expansion measure | Arkansas health official defends work requirements Election Countdown: Small-donor donations explode | Russian woman charged with midterm interference | Takeaways from North Dakota Senate debate | O'Rourke gives 'definitive no' to 2020 run | Dems hope Latino voters turn Arizona blue The Hill's 12:30 Report — Trump seizes on immigrant 'caravan' for midterms | WHCA criticizes Trump for praising lawmaker who assaulted reporter | Trump takes harder line on Saudis MORE (N.D.), Jon TesterJonathan (Jon) TesterOvernight Energy: Outdoor retailer Patagonia makes first Senate endorsements | EPA withdraws Obama uranium milling rule | NASA chief sees 'no reason' to dismiss UN climate report Trump on 'I love you' from rally crowd: 'I finally heard it from a woman' Patagonia makes its first election endorsements with two Western Democrats MORE (Mont.) and Mark WarnerMark Robert WarnerDems can use subpoena power to reclaim the mantle of populism Is there a difference between good and bad online election targeting? Collusion judgment looms for key Senate panel MORE (Va.), along with Sens. Joe ManchinJoseph (Joe) ManchinFive takeaways from testy Heller-Rosen debate in Nevada Blankenship endorses ex-W.Va. GOP Senate rival, calls him 'lying' drug lobbyist Conservatives bankrolled and dominated Kavanaugh confirmation media campaign MORE (W.Va.), Claire McCaskillClaire Conner McCaskillOvernight Health Care — Presented by Purdue Pharma —Senate debates highlight fight over pre-existing conditions | Support grows for Utah Medicaid expansion measure | Arkansas health official defends work requirements McCaskill campaign says ‘intern’ who filmed campaign had access to voter data McConnell defends Trump-backed lawsuit against ObamaCare MORE (Mo.), Tim KaineTimothy (Tim) Michael KaineAmerica’s ball cap industry is in trouble Overnight Defense: Trump says 'rogue killers' could be behind missing journalist | Sends Pompeo to meet Saudi king | Saudis may claim Khashoggi killed by accident | Ex-VA chief talks White House 'chaos' | Most F-35s cleared for flight Democrats torch Trump for floating 'rogue killers' to blame for missing journalist MORE (Va.) and Gary PetersGary Charles PetersHillicon Valley: Facebook deletes accounts for political 'spam' | Leaked research shows Google's struggles with online free speech | Trump's praise for North Korea complicates cyber deterrence | Senators want Google memo on privacy bug Lawmakers move to award posthumous Congressional Gold Medal to Aretha Franklin The farm bill gives Congress a chance to act on the Pet and Women Safety (PAWS) Act MORE (Mich.), and independent Sen. Angus KingAngus Stanley KingCollusion judgment looms for key Senate panel People have forgotten 'facade' of independent politicians, says GOP strategist Senate poised to confirm Kavanaugh after bitter fight MORE (Maine). Sens. Tom CarperThomas (Tom) Richard CarperOvernight Energy: Trump administration doubles down on climate skepticism | Suspended EPA health official hits back | Military bases could host coal, gas exports Trump poised to sign bipartisan water infrastructure bill Overnight Health Care — Presented by the Coalition for Affordable Prescription Drugs — Senators face Wednesday vote on Trump health plans rule | Trump officials plan downtime for ObamaCare website | Lawmakers push for action on reducing maternal deaths MORE and Christopher CoonsChristopher (Chris) Andrew CoonsDem senators urge Pompeo to reverse visa policy on diplomats' same-sex partners 15 Saudis identified in disappearance of Washington Post columnist The Senate needs to cool it 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 HensarlingOn The Money: Watt's accuser describes sexual harassment claims in stunning testimony | SEC sues Elon Musk for fraud | Mnuchin says GOP hasn’t lost messaging war on taxes Mel Watt's accuser describes sexual harassment claims in stunning testimony House panel invites Watt accuser to testify at Thursday hearing 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 WarrenDNA is irrelevant — Elizabeth Warren is simply not Cherokee The Hill's 12:30 Report — Trump seizes on immigrant 'caravan' for midterms | WHCA criticizes Trump for praising lawmaker who assaulted reporter | Trump takes harder line on Saudis Clinton aide: Chances 'highly unlikely' but 'not zero' Hillary will run for president again 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 SchatzDem senator calls for US action after 'preposterous' Saudi explanation Graham: Saudi’s findings on slain journalist not 'credible' Overnight Health Care — Presented by Purdue Pharma — Democrats, McConnell spar over entitlements | Minnesota AG sues drugmakers over insulin price hikes | CDC investigates polio-like illness MORE (Hawaii), Catherine Cortez Masto (Nev.) and Chris Van HollenChristopher (Chris) Van HollenDem senator: 'Shameful' seeing Trump serve as 'mouthpiece' for Saudi leaders Overnight Defense: Trump says 'rogue killers' could be behind missing journalist | Sends Pompeo to meet Saudi king | Saudis may claim Khashoggi killed by accident | Ex-VA chief talks White House 'chaos' | Most F-35s cleared for flight Democrats torch Trump for floating 'rogue killers' to blame for missing journalist MORE (Md.), Jack ReedJohn (Jack) Francis ReedOvernight Defense: Trump asks Turkey for evidence on missing journalist | Key Dem calls for international probe | Five things to know about 'MBS' | Air Force struggles to determine cost of hurricane damage to F-22 jets Trump administration doesn't have ambassadors in Saudi Arabia or Turkey Top Armed Services Dem calls for international probe into missing Saudi journalist MORE (R.I.) and Bob MenendezRobert (Bob) MenendezTrump lowers refugee goal to 30,000, he must meet it Blame Senate, not FBI, for Kavanaugh travesty Dems urge tech companies to remove 3D-gun blueprints 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.”