Congress approves bill to roll back bank regulations
© WikiMedia (Office of the Speaker)

Congress approves bill to roll back bank regulations

In a 258-159 vote, the US House on Tuesday approved a bill [text, PDF] to decrease some regulations that Dodd-Frank imposed on banks during the Obama administration.

This vote follows an executive order President Donald Trump issued [JURIST report] last year, ordering the dismantling of the 2010 law, which was designed to prevent banks from taking risks that would lead the country into another financial crises.

The bill is set to free [NYT report] many of the regional banks from stricter regulations. It would also slacken rules [WP report] that were put into place to safeguard larger banks from collapse, raising the threshold of assets for banks from $50 million to $250 million. This change would cut the number of banks that receive heightened scrutiny in half and will allow some of these banks to increase in size.

The legislation does not provide relief to banks like JPMorgan Chase or Goldman Sachs, but the Trump administration is will continue working with regulatory agencies to ease the regulations these firms are subjected to.

White House officials expect to have the bill signed before Memorial Day.