Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
The New York Stock Exchange. Photo: BRYAN R. SMITH / AFP / Getty Images
The Senate on Tuesday passed a proposal with bipartisan support to significantly roll back Obama-era regulations intended to prevent another financial crisis by imposing restrictions on banks.
Why it matters: The bill, which has the support of President Trump and top Federal Reserve officials, now heads to the House. It may be modified there, but is very likely to pass in some form. This is the most significant step to revamp financial rules since Republicans took control of Washington last year, the Wall Street Journal notes.
The changes, per WSJ:
- The Senate measure would increase the regulatory threshold at which banks face tighter oversight to $250 billion in assets from the current $50 billion.
- It would eliminate restrictions in the 2010 Dodd-Frank financial law meant to limit damages institutions could cause to the economy.
- It gives the government some discretion to closely monitor "banks in the $100 billion to $250 billion range depending on their perceived risk levels."
- A number of smaller banks would avoid certain elements of federal oversight.
What they're saying:
- The bill has exposed a divide among moderate Democrats — some of whom supported the measure — and liberals who opposed it. Opponents, like Sen. Elizabeth Warren (D-Mass.), say it would only bring unnecessary risk to the financial system and harm consumers.
- Supporters say it would increase lending and boost the economy, and also help small institutions that are struggling under regulations primarily aimed at larger banks.
White House press secretary Sarah Sanders lauded the bill's passage in a statement. “The bill provides much-needed relief from the Dodd-Frank Act for thousands of community banks and credit unions and will spur lending and economic growth without creating risks to the financial system,” she said.