June 9, 2017
The U.S. House of Representatives voted to change much of former President Barack Obama’s landmark banking law, the Dodd-Frank Act, which was created after the 2008 economic crisis. Republicans argued the rules designed to prevent another meltdown were making it harder for community banks to lend, and hampered the economy.
Democrats defended the Dodd-Frank law, saying it brings financial security for millions of people, and undoing it would encourage the kind of risky lending practices that invite future economic shocks.
The sweeping legislation approved by Republican-led lawmakers this week targets the heart of the law’s restrictions on banks by offering a trade-off: Banks could qualify for most of the regulatory relief in the bill, so long as they meet a strict requirement for building capital to cover unexpected big losses.
The overhaul of the 2010 Dodd-Frank law is unlikely to clear the Senate in its current form.
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