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House votes to weaken Obama-era bank crackdown law

The Senate is less motivated to pass a repeal of the financial oversight legislation.”The Wrong Choice Act is a vehicle for Donald Trump’s agenda to get rid of financial regulation and help out Wall Street“.”I’ve spent my career taking on the big banks and other financial institutions that take advantage of the people they are supposed to serve”, Caforio said.Christopher Dodd, D-Conn., right, and then- House Financial Services Committee Chairman Rep. Barney Frank, D-Mass., spoke to reporters outside the White House in Washington, after their May 2010 meeting with President Barack Obama.Democrats overwhelmingly opposed the Republican bill, which faces major obstacles in the Senate. This crucial provision provides banks a reasonable and fundamental trade-off: more capital, less intrusive regulation. The betting is that the Senate will pass its own version of the bill which will then have to be reconciled with the House’s in conference.The CHOICE act faces nearly no chance of passage in the Senate, CNBC reported. Trump has also ordered three reviews of banking rules, the first of which Treasury Secretary Steven Mnuchin is scheduled to deliver this month.”Our community banks are in trouble”, said Speaker Paul Ryan, R-Wis. Democrat critics said it would “pave the way” for economic damage on the scale of the financial crisis or worse.Ironically, one group that isn’t a fan of everything in Hensarling’s bill is Wall Street.”Democrats have shown we’re willing to work with Republicans to tailor the rules where it makes sense, but not if it means killing the reforms that have made the financial system safer and fairer”, he said in a statement earlier this week.The legislation would strip the CFPB of some of its most important powers.Under the House bill, the CFBP must seek congressional approval before implementing any regulations on financial companies, stripping the Bureau of the autonomy that gives it value. And it would no longer be able to levy hefty fines against financial institutions for “unfair” or “deceptive” practices. Earlier this year, Hensarling called the bureau “Orwellian”. The CFPB was created under Dodd-Frank and designed to operate as an independent watchdog with a single director.”This partisan, risky legislation would once again leave families, seniors, and servicemembers at the mercy of predatory lenders, and put taxpayers back on the hook to pay for Wall Street’s greed and recklessness, ” said a statement from Brown. “For the goal of making the financial system safer, you can do a lot more of that with less complex and less burdensome regulation”, Kim Schoenholtz, director of the Center for Global Economy and Business at NYU’s Stern School of Business, told CNBC.