Senate GOP doubles down on Dodd-Frank overhaul, adds rewrite to $21B spending bill

Markets Associated Press

Senate Republicans are trying to use a must-do spending bill to advance legislation significantly rewriting landmark 2010 legislation that tightened regulation of the financial services industry.

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The measure would ease requirements on smaller banks and give lenders greater freedom from mortgage lending rules. The legislation is opposed by Democrats who argue that the 2010 Dodd-Frank law strengthened protections for consumers and reduced the odds for a repeat of the 2008 financial crisis.

The measure cleared the Banking Committee two months ago but appears unlikely to pass the Senate soon. The underlying spending bill has a troubled path as well, since Democrats oppose its additional cuts to the IRS and other agencies.

GOP author Sen. John Boozman of Arkansas praised the measure for protecting political groups from a potential IRS crackdown.