U.S. House of Representatives likely to review 2010 Dodd-Frank financial reform law by May

The object is not to repeal but to review and reform the 2010 Dodd-Frank financial reform law which aims to provides critical protections to taxpayers and consumers.

As per a leading Republican lawmaker, the U.S. House of Representatives is likely to take up a bill that relaxes the banking rules that were adopted in the wake of the financial crisis that gripped the world in 2007-2009.

The comment by Representative Kevin McCarthy, the House majority leader, is one of the strongest signs that a deal could soon be reached between the Senate and the House to pass the first rewrite of the 2010 Dodd-Frank Act.

In April 2018, the Senate had voted 67-32 in favor of a bipartisan bill tha aims to ease oversight for small and medium-sized banks.

So far, House Republicans have stalled the move on the grounds that additional provisions should be part of the rewrite that further lowers regulatory burden on small and mid-sized banks.

Democrats on the other hand, say any further weakening of the 2010-Dodd-Frank Act would not get their support since the act essentially provides critical protections for consumers and taxpayers.

With the two sides sticking to their respective positions, bank lobbyists have grown increasingly concerned that the bill could sink if the House does not approve the Senate version.

However, McCarthy opined both sides have showed a willingness to pass the bill, with the focus being reform rather than repeal the Dodd-Frank.

“I think you are within a month of getting it … done,” said McCarthy to the Milken economic conference in Beverly Hills, California.

He went on to pledge, “At the end of the day, there will be a bill at the president’s desk,” before congressional elections in November.

In March 2018, Trump had said he would sign the bill once it is approved by both the Senate and the House.

U.S. Treasury Secretary Steven Mnuchin also weighed in saying he was hopeful the changes, which were important for small lenders and community banks, would soon see the light of day.

“This should get done now. I am hopeful this gets done in the next 30 to 60 days,” said Mnuchin .

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