President Donald Trump on Thursday signed into law legislation rolling back some of Dodd-Frank’s financial rules.
Trump called for the dismantling of the Dodd-Frank Act during his presidential campaign. This bill, however, fell well short of that, leaving key parts of the regulatory act unchanged – including the Consumer Financial Protection Bureau, according to a Los Angeles Times report.
The legislation instead focuses on decreasing the regulatory burden of small and medium-sized banks, which complained that they were saddled unfairly with regulations designed to keep banking giants in check after the 2008 financial collapse.
“The legislation I’m signing today rolls back the crippling Dodd-Frank regulations that are crushing community banks and credit unions nationwide,” Trump said. “These community banks are vital for local lending and have a direct stake in the success of their neighborhoods and their states.”
The legislation will free community banks from Dodd-Frank’s mortgage rules if they make fewer than 500 mortgage loans a year, according to the Times. Banks with less than $10 billion in assets will be exempt from the Volvker Rule, which bars financial institutions from trading for their own profit.
The House of Representatives passed the bill on Tuesday. The legislation passed the Senate in March with support from several Democrats.
“This is a great day for Main Street in rural America, and a big testament to what’s possible when members of Congress put partisanship aside and work together to help our communities grow and thrive,” said Sen. Heidi Heitkamp (D-N.D.), one of the Senate Democrats who had a hand in crafting the legislation.
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