House Set to Vote on Senate Version of Dodd-Frank Law Rollback

(Bloomberg) -- The House plans to vote next Tuesday on Senate-passed legislation that would free regional and community banks from some of the toughest requirements of the Dodd-Frank Act, putting the bill on the verge of becoming law.

The scheduled vote, confirmed by a House Republican aide, means that the biggest impediment to enactment -- opposition by House Financial Services Committee Chairman Jeb Hensarling -- has been resolved.

Hensarling, one of Dodd-Frank’s most vocal critics in Congress, had fought to amend the Senate bill to include bigger revisions to rules imposed after the 2008 financial crisis. That led to an impasse because the moderate Democrats who helped move the bill through the Senate had warned that changes could jeopardize their support.

The bipartisan bill crafted by Senate Banking Committee Chairman Mike Crapo received a 67-31 Senate vote. The same elements of the bill have already passed the House as part of other legislation. The White House has said President Donald Trump will sign the bill.

The legislation removes smaller lenders from the ranks of banks deemed too-big-to-fail.

The Senate legislation would raise to $250 billion from $50 billion the asset threshold for banks to be designated as systemically important financial institutions, a status that subjects them to stricter Federal Reserve supervision.

--With assistance from Elizabeth Dexheimer

To contact the reporter on this story: Erik Wasson in Washington at ewasson@bloomberg.net.

To contact the editors responsible for this story: Joe Sobczyk at jsobczyk@bloomberg.net, Laurie Asséo

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