Introduction
The Dodd-Frank Act is under threat. Republicans have long targeted the act, which was passed to strengthen and reform the US banking and financial system after the global financial crisis of 2008. Now they're acting to undermine it. In May, the House of Representatives took a step towards weakening Dodd-Frank Act by passing the Financial CHOICE Act, which repeals most of it. In addition, last week the Treasury released a summary of part of its proposal to weaken Dodd-Frank, which isn't as extreme as the Financial CHOICE Act, but still will have a large effect.
We expect that any bill that's debated in the Senate will look more like the Treasury proposal than the Financial CHOICE Act, but we don't know that yet. What we do know, though, is that Republicans will try to push through changes to Dodd-Frank that Wall Street wants, even if they make another catastrophic financial crisis more likely.
Financial regulation can be confusing; this explainer is intend...