WASHINGTON — Republicans took a big step toward repealing the Affordable Care Act on Thursday, and they took a small step toward dismantling another of President Barack Obama’s signature pieces of legislation, the Dodd-Frank Act.
With only the support of Republicans, the House Financial Services Committee voted in favor of the Financial Choice Act, a bill that would gut central financial regulations created in the aftermath of the 2008 financial crisis. The bill is expected to get a vote from the full House in the coming months. But, in its current form, it is not expected to pass in the Senate, where it would need support from Democrats to garner the necessary 60 votes.
The Choice Act would exempt some financial institutions from capital and liquidity requirements, essentially excusing them from the 2010 Dodd-Frank Act if they hold enough cash.
It would replace the Orderly Liquidation Authority, which critics say reinforces the idea that some banks are too big to fail, with a new bankruptcy code provision intended for large financial institutions.
It also would weaken the powers of the Consumer Financial Protection Bureau. Under the proposed law, the president could fire the agency’s director at will.
Republicans hailed the committee vote as a win for financial institutions. “Our plan replaces Dodd-Frank’s growth-strangling regulations on small banks and credit unions with reforms that expand access to capital so small businesses on Main Street can grow and create jobs,” said Representative Jeb Hensarling, Republican of Texas and chairman of the House Financial…