House Financial Services Committee Chairman Jeb Hensarling, who outlined his latest effort in a memo to lawmakers this week, would give banks relief from annual stress tests that assess whether they can survive financial meltdowns, Bloomberg News reported yesterday. The legislation, which he could introduce as soon as this month, also seeks to eviscerate key powers of the Consumer Financial Protection Bureau. Hensarling is taking a second crack at weakening the Dodd-Frank law, which set new rules for banks after the 2008 financial crisis. Last year, the Texas Republican’s bill stalled in the House. This year’s version is again likely to be a tough sell, especially in the Senate where it will need Democratic support to pass. President Donald Trump last week directed regulators to review financial rules and report back on suggested changes within 120 days, one of the first steps his administration has taken to make good on his promise to do "a big number" on Dodd-Frank. Still, major changes to the law would need to be made by Congress.
