Financial Times, February 22, 2018: Democrats get campaign cash from banks ahead of deregulation vote
A number of key Democrats in the US Senate are finding pockets of financial support for re-election races this year from a cluster of banks that have stepped up campaign contributions ahead of a vote on industry deregulation.
A bipartison bill which could proceed to a full vote in coming weeks would lift the threshold for “systemically important” banks from $50bn in assets to $250bn, cutting from 38 to 12 the number of institutions subject to more intense oversight by the Federal Reserve.
The bill has attracted support from banks approaching the $50bn mark, which have most to gain from the deregulation and have blanched at the cost of complying with tougher requirements on capital and liquidity, as well as stress tests and so-called living wills.
While Democrats tend to be united in opposing measures that might hand advantages to bigger banks such as Wells Fargo or Goldman Sachs, the new bill has opened up a rift within the party, as moderates tout its benefits for regional banks and rural economies.