The bill, which passed 219 to 206, contained a provision which rolled back part of the Dodd-Frank Act. The provision would allow FDIC-insured banks to conduct risky derivatives trading that Dodd-Frank had barred in the wake of the financial meltdown.
House Minority Leader Nancy Pelosi (D-Calif.) railed against the bill, calling the provision rolling back Dodd-Frank blackmail. “We don’t get a bill unless Wall Street gets its taxpayer funded coverage,” she said.
But the bill enjoyed the grudging support of the White House, primarily because it did not gut the Affordable Care Act and President Obama’s executive orders on immigration reform. Those omissions caused 67 Republicans to break ranks and vote against the bill, saying it wasn’t conservative enough. But 57 Democrats sided with the White House, allowing the bill to squeak through.
The bill’s passage in the House means the government will keep running until at least Saturday. It will now head to the Senate, where it may be debated through the weekend and into Monday, according to a Fox News report. The bill’s fate in the Senate is unclear, however; the Dodd-Frank provision faces stiff opposition from Sen. Elizabeth Warren and her supporters.
“This Congress can’t be here to say, ‘What can we do to improve the profitability of a half-dozen large institutions?’ and shove all the risk off to the American people again,” Warren said Wednesday. “This Congress has to stand for a little more safety and security in our financial system.”
The House narrowly passed a controversial spending bill last night, preventing – for the moment at least – a partial government shutdown.