“This week, the Senate begins debate on the Economic Growth, Regulatory Relief and Consumer Protection Act, known as the Crapo bill for its primary sponsor, Mike Crapo, a Republican senator from Idaho. The bill would roll back or eliminate parts of the Dodd-Frank Act.
The Crapo bill is unusual in today’s hyperpartisan environment: It has over 10 Democratic co-sponsors, many from swing or red states and up for re-election this year — like Joe Donnelly of Indiana, Heidi Heitkamp of North Dakota, Jon Tester of Montana and Claire McCaskill of Missouri — making its passage possible.
Why would some Democrats provide support for a rollback of Dodd-Frank? Proponents argue that this bill provides much needed relief for community banks and credit unions, which, these proponents claim, face enormous difficulties. They also say that it doesn’t endanger financial reforms aimed against the largest and most dangerous players.
But that view is mistaken: This bill goes far beyond the health of community banks and credit unions. It removes protections for 25 of the top 38 banks; weakens regulations on the biggest players and encourages them to manipulate regulations for their benefit; and saps consumer protections.”