U.S. House Republicans advanced legislation to undo Congress’s response to the 2008 financial crisis after Democrats forced quick action on the measure that they decried as toxic.Financial Services Committee Chairman Jeb Hensarling’s bill, which he said will spur economic growth and end bank bailouts, will move to the House floor after a 30-26 vote in an acrimonious committee markup on Tuesday. The Financial Choice Act is the Texas Republican’s plan for replacing the six-year-old Dodd-Frank Act.
“This bill is so bad that it simply cannot be fixed,” Representative Maxine Waters, the panel’s ranking Democrat, said in a statement before the vote. “It’s clear that this is a rushed, partisan messaging tool, though why anyone would want to push legislation to deregulate Wall Street at a time like this is beyond me.”Even with committee approval, the legislation isn’t expected to get a vote on the House floor. Many Republicans aren’t anxious to take a position that can be portrayed as giving support to the financial industry, especially in the weeks leading up to an election.
Scrapping Dodd-Frank may be even less popular after Wells Fargo & Co. set off a renewed backlash against banks in Washington when it agreed last week to pay $185 million in fines for allegedly opening deposit and credit-card accounts without customers’ approval.