House Votes to Gut Dodd-Frank
The House voted 233 to 186 today for a sweeping rewrite of the rules governing Wall Street, an opening Republican bid to encourage economic growth by loosening regulation of the financial sector.
The House bill would unwind major parts of Dodd-Frank by relieving healthy banks of some regulatory requirements and forcing failing firms through bankruptcy rather than a liquidation process spearheaded by the regulators. It would subject new financial rules to cost-benefit analysis, boost penalties for financial wrongdoers, and repeal the Volcker rule restricting banks from speculative trading. Supporters of the plan say scrapping what they view as onerous regulatory requirements will ultimately help smaller businesses, allowing them to grow and create jobs.
Good news for finance careers? Bad for the US?