As U.S. politics descends ever further into partisanship, there are still signs that old-fashioned legislating is not dead. This week, the Senate Banking Committee will mark up one of the first significant pieces of financial regulatory legislation in years with real bipartisan support. That means an opportunity for lasting, incremental progress that we should welcome.
The proposed bill, which has 10 Republican and 10 Democratic co-sponsors, would not revolutionize the U.S. financial regulatory system, and that’s a good thing. The Dodd-Frank Act and other post-financial crisis reforms have made the financial system and Americans safer overall, but like most major reforms, they have also created unintended consequences. The Senate bill would address some of these, while retaining the overall post-crisis framework that is generally working.