Senate Democrats Help Advance Bill That Could Increase Risk Of Financial Crisis

WASHINGTON ― With support from Senate Democrats, Congress is on track to pass a bill that would enrich banks but slightly raise the odds of a financial crisis like the one that tanked the economy 10 years ago.

Seventeen members of the Democratic caucus joined nearly all Republican senators on Tuesday in voting to advance the Economic Growth, Regulatory Relief, and Consumer Protection Act, a bill that was co-sponsored by Senate Banking Committee Chair Mike Crapo (R-Idaho) and committee member Sen. Jon Tester (D-Mont.). The legislation garnered support from a mix of centrist and red-state Democrats, who argued it would help small community banks and make it easier for Americans to buy a home by increasing access to capital.

“We’re talking about smaller banks, regional banks. They didn’t cause the financial crisis to begin with,” Sen. Gary Peters (D-Mich.) said Tuesday.

That the legislation would also increase the risk of a financial crisis isn’t a criticism from some far-left interest group, however ― it’s the conclusion of the Congressional Budget Office, which produces independent, nonpartisan analysis of budgetary issues.


Source : huffingtonpost