Published: Thu, June 22, 2017
Economy | By Melissa Porter

Trump tweets support for banking bill

House Republicans headed toward a vote June 8, 2017, on dismantling sweeping financial rules established under Obama that were created to head off economic meltdowns.

Late Thursday, lawmakers in the lower chamber voted passed the Republican bill, called the Financial Choice Act, along strict party lines by a vote of 233-186.

The legislation is a comprehensive package of rules and regulations meant to overhaul and replace what its architect, Rep. Jeb Hensarling (R-Texas), refers to as "the failed Dodd-Frank Act that has contributed to the worst economic recovery of the last 70 years".

"Hopefully, the nightmare of Dodd-Frank will be gone soon", Hensarling, a Texas Republican, said in an interview Thursday. "It stands for economic growth for all, but bank bailouts for none", he said.

Among the major changes, the bill allows banks that maintain a certain level of financial surplus to opt-out of those rules and abolishes the bailout process established for major financial institutions.

Republicans argue that regulations under Dodd-Frank have throttled the banking industry and made it hard for small business and individuals to receive loans. "We will replace economic stagnation with a growing, healthy economy".

The legislation would also weaken the powers of the Consumer Financial Protection Bureau.

The bill faces an uncertain future in the Senate. Senate Democrats' say they have little interest in reforming Wall Street regulations that aim to keep the country's financial system safe, and Republicans are bogged down with healthcare and tax policy, which may slow progress, Bloomberg reports.

The Republican-led House has moved closer to fulfilling President Donald Trump's goal of doing "a big number" on Dodd-Frank.

"I voted against the Wrong CHOICE Act because it erases financial protections for American families and eliminates the safeguards enacted to protect against another financial crisis", said Sewell. Elizabeth Warren (D-Mass.) said in a statement.

"It's shameful that Republicans have voted to do the bidding of Wall Street at the expense of Main Street and our economy". We remember the millions of people who lost their jobs, their homes, and their life savings because of Wall Street's reckless greed.

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