Senate Approves Dodd-Frank Reform Bill, Possibly DOA in House

A mostly bipartisan Senate voted yesterday 67-31 to advance a bill that would make significant changes to bank regulatory oversight provisions in the Dodd-Frank Act. The bill, led by Senate Banking Committee Chairman Mike Crapo (R- ID), passed after months of compromise between Republicans and moderate Democrats.

It took more than four months for the Dodd-Frank reform bill to come to a full vote on the Senate floor after the Banking Committee approved it back in December. At the committee level, Democrats Elizabeth Warren (D- MA) and Sherrod Brown ( D- OH) attempted to make changes to the bill that would curtail a number of provisions that reduced regulatory burdens and stress test requirements for large banks. However, a coalition of Republicans and moderate Democrats nixed the proposed amendments.

In particular, Sen. Warren has been a staunch opponent of the bill, referring to it as the “Bank Lobbyist Act” on news programs, the Senate floor, twitter, and even in campaign emails. Her actions have upset moderate Democrats supporting the bill, many of them in tough battles for reelection in states that voted heavily Republican in 2016.

Despite having considerable Republican and Democratic support in the Senate, the reform bill may fail to proceed in the House. House Financial Services Committee Chairman Jeb Hensarling (R- TX) informed Senate leadership this week that the House would not entertain the bill unless it unwound banking and securities regulations even more.

Many coalition Senators have been adamant that the bill will remain unchanged. One member of the coalition, Sen. Jon Tester (D- MT), said, “This bill is a product of months of bipartisan negotiation. The fact is it’s been years. We’ve been at this for five or six years negotiating on a bill — and this is the final product.”