Dodd-Frank Reforms Gaining Bipartisan Support in Senate

What’s the story?

The push to overhaul the Dodd-Frank Act, a massive, signature piece of legislation aimed at regulating the financial industry that was passed after the Great Recession, is ramping up in the Senate. Reforms being drafted include drastic reductions to the number of banks subject to strict rules around federal oversight and regular "stress testing", which measures a bank’s ability to withstand an economic downturn.

Only 10 large banks would be left subject to the strictest levels of regulation.

Reform measures also include expanding consumer access to mortgages, reducing regulations on community banks and limiting credit report data collection, reports The Hill.

The Senate legislation is gaining bipartisan support from moderate Democrats. So far, Sens. Heidi Heitkamp (D-ND), Jon Tester (D-MT), Joe Donnelly (D-IN), Mark Warner (D-VA), Joe Manchin (D-WV), Claire McCaskill(D-MO), Tim Kaine (D-VA), Gary Peters (D-MI), and Angus King (I-ME) have signed onto the reform bill, formulated by Senator Mike Crapo (R-ID), head of the Senate Banking Committee.

The bill, entitled the Economic Growth, Regulatory Relief, and Consumer Protection Act, is expected to move out of committee and be brought to a floor vote within the next month, reports the New York Times.

Progressive senators, led by Sen. Elizabeth Warren (D-MA), who previously headed the Consumer Financial Protection Bureau which was created by the Dodd-Frank Act, have vowed to fight the legislation. She maintains that supporters are setting the country up for another taxpayer-funded bailout.

Supporters of the legislation, like Heitkamp, argue that the extent of regulation enforced by Dodd-Frank is stifling economic growth.

The Senate legislation is less sweeping in its deregulation effort than a related measure that passed the House in 2017. If it passes the Senate it would go to conference and have to be reconciled with the House version before it could make it to the president’s desk for final passage.

What do you think?

Do you support efforts to reform Dodd-Frank or not? What do you think of the Senate version of reform? Do you think it’s a reasonable compromise to stimulate growth? Do you think it doesn’t go far enough deregulating Wall Street, or do you think it’s setting us up for another financial crisis?

Tell us in the comments what you think, then use the Take Action button to tell your reps!

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— Asha Sanaker

(Photo Credit: Edward Kimmel via Flickr / Creative Commons)