Spending measure would roll back rules on banks

AP News
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Posted: Dec 10, 2014 6:03 PM

WASHINGTON (AP) — A provision in the $1.1 trillion spending bill moving through Congress would ease regulations imposed on big banks in the Dodd-Frank overhaul of financial regulations after the 2008 economic meltdown.

The Republican-backed provision would roll back regulations that prohibit financial institutions from using federal deposit insurance to back investments on some complex financial instruments called derivatives.

Supporters said that would help farmers and other borrowers secure loans, and opponents derided it as a bailout.

Sen. Elizabeth Warren, a Massachusetts Democrat, says the measure would bestow a favor on the same financial institutions "that nearly broke the economy in 2008 and destroyed millions of jobs."

The measure's inclusion could trip up the spending measure in the Senate, where any individual senator has the power to stall legislation.