The House of Representatives pushed through a bill Thursday that would gut many of the key banking reforms implemented after the financial crisis.
In a primarily partisan vote, the House passed the Financial Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs Act, a highly controversial measure that stands virtually no chance to pass the Senate.
Among the most significant provisions are measures that allow banks to escape heightened regulatory requirements and cut stress tests back from their current annual schedule, while the bill also eviscerates the Consumer Financial Protection Bureau.
In all, the measure takes aim at the Dodd-Frank reforms, which sought less risk and higher capital levels from an industry linked to the crisis and the accompanying Great Recession. Lenders got in trouble after mass defaults of risky mortgages, then required a government bailout when they didn't have the capital to cover their losses.
"This is a jobs bill for Main Street. It will rein in the overreach of Dodd-Frank that has allowed the big banks to get bigger while small businesses have been unable to get the loans they need to succeed," said Speaker Paul Ryan in a statement Friday supporting the measure.
However, it has faced withering criticism from Democrats and some Republicans, and few provisions seem likely to survive the Senate.