US House votes to lift Wall Street constraints

US House votes to lift Wall Street constraints

The Republican-led US House of Representatives [official website] voted on Thursday to lift many of the constraints that were put into place following the 2008 financial crisis. This vote is likely the beginning of a debate over deregulation of the powerful banking industry. This bill [text], supported by the Trump administration, would amend the Dodd-Frank Wall Street Reform and Consumer Protection Act to spur economic growth by easing banking regulations. The bill is likely to face resistance in the Senate. Democrats and other progressive groups, who believe the banking industry requires tougher regulations, disapprove of the bill. These groups point out that banks reported [Chicago Tribune report] record profits last year, despite the tough Dodd-Frank Act rule. The Act is part of the broader GOP plan to reduce the size and influence of the federal government on everyday life.

The US banking industry has come under fire [JURIST op-ed], and greater regulation, since the 2008 economic downturn. As part of greater regulation, the Obama administration developed the Consumer Financial Protection Bureau (CFPB). Donald Trump began his attack on the CFPB during his campaign when he promised less regulation for businesses. In February Trump issued [JURIST report] an executive order and a presidential memorandum [texts] with orders aimed at an incremental dismantling of the Obama administration’s financial regulations. In January the president issued an executive order [JURIST report] that requires two regulations to be eliminated for every new one created.