Elizabeth Warren Blasts Fellow Democrats for Supporting a Massive Bank Deregulation Bill

Republican, Democrat senators look to rewrite Elizabeth Warren's history

But enough Democrats have joined Republicans in the Senate to almost ensure the bill's passage when it comes up for a vote later this week.

Warren said the move would benefit the larger players in the financial industry.

Hensarling says: "A community bank that's 0.002 percent the size of J.P. Morgan shouldn't be laboring under a similar set of regulatory burdens".

"If we're going to continue to have access to capital in rural areas of our country, this bill needs to pass", said Senator Jon Tester, adding the increased risk to consumers and the financial system was "very, very, very minimal". They say the legislation will help local credit unions and small community banks that have struggled to adhere to strict regulations aimed at bigger banks. In a 67-32 vote, senators cleared the way for the bill to proceed. "People in this building may forget the devastating impact of the financial crisis 10 years ago-but the American people have not forgotten", she said. "The millions of people who lost their homes; the millions of people who lost their jobs; the millions of people who lost their savings, they remember and they do not want to turn lose the big banks again".

The bill would also change how the "supplementary leverage ratio" is calculated, a key capital requirement for the biggest banks that was created to ensure those financial institutions could handle a financial disaster.

The Senate debate comes as Wall Street awaits the next big boost for bank stocks, following the tax legislation President Trump signed into law in December. The senator sent an email to her constituents Friday lambasting her Republican and Democratic colleagues for backing the bill, claiming they are selling out to industry lobbyists and bankers.

The Department of the Treasury released a 57-page proposal that did not fully repeal Dodd Frank, keeping a crucial provision that allows the Federal Deposit Insurance Corporation (FDIC) to take control of an insolvent bank and restructure it using federal money. "And that pressure on the Fed will lead to a systematic weakening of the rules for all the big banks".

Additionally, the CBO found that the bill would grow the deficit by at least $671 million between 2019 and 2027, and would slightly increase the possibility of another financial crisis.

Case in point: The bill's provisions to lift the asset threshold for enhanced prudential standards and supervision from $50 billion to $250 billion "would substantially reduce oversight over 25 of the nation's 38 largest banks, including institutions of over $100 billion in assets that were deemed "too big to fail" in 2009".

"At a time when lending discrimination is running rampant, this bill would undercut reporting requirements that enable the federal government to enforce fair lending laws", Warren said.

Unlimited free credit freezes and unfreezes, which helps consumers impacted by data breaches like the Equifax hack that compromised the personal information of approximately 145 million Americans.

"Congress's appetite for pulling back bank regulations shows the renewed clout of the financial sector in Washington, not just in the GOP but also among Democrats".

In a rare showing of bipartisanship, 13 Democrats - many of whom are facing tough midterm election contests this year - also support the bill.

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