The House of Representatives on Thursday passed legislation to roll-back and replace many of the financial regulations enacted during the Obama administration in reaction to the 2008 financial crisis.
The House passed the Financial Choice Act by a vote of 233 to 186, with Republican lawmakers in support and Democrats opposed.
The Choice Act is an ambitious piece of legislation that would replace many of the complex rules created by the Dodd-Frank Act of 2010 with a new paradigm of regulation. The bill would allow banks that fund their operations with capital beyond a certain threshold to step into a lower-touch system of regulation in which the amount of supervisory oversight would be greatly reduced.
Although it is supported by the Trump White House, the bill is unlikely to pass the Senate. Democrats have signaled their ongoing support for Dodd-Frank and view the Choice Act as letting banks “off the hook” for the financial crisis.