Donald Trump has been condemned by Democrats for trying to “kill” regulations imposed on banks following the financial crisis in 2008: Republicans in the House of Representatives approved the Financial Choice Act, which would abrogate government bailouts for banking giants and provide less restrictions on their investment activity.
The bill undoes the Dodd-Frank Act, which was signed into law by former US President Barack Obama in 2010 with the aims of reforming Wall Street and protecting consumers during the worst financial crash since the Great Depression.
The Financial Choice Act was approved by 233-186 votes, without any support from House Democrats. Nevertheless, it still has to be approved in the Senate, where it must receive some Democratic support to pass.
Senator Sherrod Brown, the leader of Democrats on the Senate’s banking committee, affirmed the Choice Act would be a “massive giveaway to megabanks”, and underlying it could make Americans vulnerable to debt collectors: “This partisan, dangerous legislation would once again leave families, seniors, and service members at the mercy of predatory lenders, and put taxpayers back on the hook to pay for Wall Street’s greed and recklessness.”
The Senate, however, has been working on another measure, more focused on easing regulations on community banks.