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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.

Go deeper

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Health: Coronavirus cases rose 10% in the week before Thanksgiving.
  2. Politics: Supreme Court backs religious groups on New York coronavirus restrictions.
  3. World: Expert says COVID vaccine likely won't be available in Africa until Q2 of 2021 — Europeans extend lockdowns.
  4. Economy: The winners and losers of the COVID holiday season.
  5. Education: National standardized tests delayed until 2022.
4 hours ago - Health

Standardized testing becomes another pandemic victim

Photo: Edmund D. Fountain for The Washington Post via Getty

National standardized reading and math tests have been pushed from next year to 2022, the National Center for Education Statistics (NCES) announced Wednesday.

Why it matters: There’s mounting national evidence that students are suffering major setbacks this year, with a surge in the number of failing grades.

4 hours ago - World

European countries extend lockdowns

A medical worker takes a COVID-19 throat swab sample at the Berlin-Brandenburg Airport. Photo by Maja Hitij via Getty

Recent spikes in COVID-19 infections across Europe have led authorities to extend restrictions ahead of the holiday season.

Why it matters: "Relaxing too fast and too much is a risk for a third wave after Christmas," said European Commission President Ursula von der Leyen.