In the continuing spirit of Washington gamesmanship, Republicans recently tacked an important Dodd Frank revision onto an essential spending bill, in the hopes of ensuring its passage. In seeking to raise the limit on "too big to fail" banks from $50 billion to $500 billion, they would drastically diminish protection of the banking system and the public.
Senate Republicans are trying to use a must-do spending bill to advance legislation significantly revising a landmark law that tightened regulation of the financial services industry after the 2008 financial crisis. The legislation is opposed by Democrats who argue that the 2010 Dodd-Frank law strengthened protections for consumers and reduced the odds for a repeat of the Great Recession following the 2008 financial meltdown. "This bill tries to dismantle Wall Street reforms that have helped protect consumers and stop reckless risk-taking," said Sen. Chris Coons, D-Del. The banking measure would lift the asset threshold for banks considered "too big to fail" from $50 billion to $500 billion, giving regulators flexibility to exempt them from tougher capital requirements and stricter oversight.