The Senate has passed a bill that greatly diminishes Dodd-Frank’s interference with our banking industry by easing the regulatory burden on financial institutions lesser than the half-dozen or so that have been (mistakenly, IMNSHO) designated systemically important.
There’s concern about the willingness of the Progressive-Democrats who voted for it (including voting to get it past cloture) to vote for it again were it to come back from the House changed in any way. Republican Senators, as a result, want the House to pass the bill as it is, without alteration or delay.
Many in the House, and The Wall Street Journal, whose op-ed prompted this post, demur and want more reforms added.
Republican Senators’ concerns about the timidity of the Progressive-Democrats and their willingness to vote favorably again is valid, though, and the House altering the bill and forcing that second vote in the Senate is unnecessarily risky. It might cost the entire bill.
Another path is for the House to take the bird in hand and pass it, preserving the partial reforms. Then they should pass their own bill containing the remaining items of interest. At that point Majority Leader Mitch McConnell (R, KY) and his banking committee Senators should force a vote on the House bill, putting all the Progressive-Democrat Senators on the voting record as favoring or disfavoring banking reform. In an election year.