Still Lobbying
If legislation is proposed that helps banks lend “responsibly” to small businesses and homeowners, Warner will consider it, said his spokesman Kevin Hall.
Banks are responding to the blowback by taking a pause from public campaigning. Lenders have also urged Capitol Hill allies to refrain from proposing minor bills that bring attention to Dodd-Frank and stand little chance of getting through the politically-divided Senate.
The industry’s lobbying hasn’t stopped in more private settings, according to interviews with congressional aides, trade associations and representatives of large and small banks. For now, it’s more focused on urging regulators to scale back rules, said the people, who asked not to be named because they weren’t authorized to speak publicly.
Banks were never going to have an easy time rolling back Dodd-Frank. Because bills require 60 yes votes in the Senate to overcome political hurdles, Republicans need at least six other votes to pass legislation. President Barack Obama also can veto measures he doesn’t like.
Changes to Dodd-Frank that Congress has approved so far were wrapped into unrelated bills that had broad political support, like funding the federal government.
Treasury Call
The banking industry’s predicament became even harder in January when House Republicans tried to tweak financial rules during the first week of the new Congress, a move that Warren and Representative Maxine Waters jumped on to push the theme that Dodd-Frank was under attack.
Democrats lined up against the bill and Treasury Secretary Jacob J. Lew called House Minority Leader Nancy Pelosi the day of the vote to emphasize Obama would veto the legislation if it ever passed Congress, according to a Treasury official with knowledge of the discussion.
The bill failed to get the two-thirds support of House members that it needed to pass, necessitating a second vote.