"As I held roundtables across West Virginia, I heard from small business owners and job creators that Obama-era regulations make it harder for community banks to make loans to small businesses", Mooney said. Speaker Paul RyanPaul RyanEx-GOP rep: Ryan's impeachment claim about Trump "isn't true" Tom Brokaw: "Trump ran as a big time exec, not as an apprentice" Trump praises House vote to dismantle Dodd-Frank MORE (R-Wis.) and GOP leaders touted the bill before Thursday's vote.
The bill can be described as a Republican effort to replace the "Dodd-Frank Wall Street Reform" which they say suffocates small businesses and empowers unaccountable bureaucrats. Senators have said they'll spend the next few months trying to find common ground on legislation created to boost the economy.
The bill purports to end "too-big-too-fail" by ending Title II of Dodd-Frank, which provided a pathway to resolve the failure of large financial institutions.
The bill is not expected to receive sufficient support in the Senate in its current form since Democrats have universally opposed it.
Democrats defended the Dodd-Frank law, saying it has meant financial security for millions of people and that undoing it would encourage the kind of risky lending practices that invite future economic shocks.More news: Rain lashes Australia's Champions Trophy chances
The measure does not contain a repeal of Dodd-Frank's limits on debit card swipe fees, a provision removed after it became clear that it put the entire bill at risk of failing to garner enough votes.
President and CEO of the American Bankers Association Rob Nichols explained that the bill is not seeking to entirely repeal Dodd-Frank, but rather dial back aspects that "overshot".
The newly passed Republican bill would also get rid of trading restrictions under the Volcker Rule and would strengthen provisions in cases of bankruptcy to protect taxpayers.
The act restructures the Consumer Financial Protection Bureau, created to guard against fraud in lending.More news: Tim Howard and USMNT are prepared for must-win battle at altitude
"Dodd-Frank regulations masqueraded as being friendly to consumers and businesses, when in reality, this could not have been farther from the truth", Knight said.
"We see free checking cut in half at bank. For the goal of making the financial system safer, you can do a lot more of that with less complex and less burdensome regulation", Kim Schoenholtz, director of the Center for Global Economy and Business at NYU's Stern School of Business, told CNBC.
Democrats suggested they would modify Dodd-Frank, but said the Republican bill presented too sweeping an overhaul of the original legislation. "The Senate should take up our legislation immediately".
The financial crisis of 2008 sent shockwaves through the USA economy. Stronger capital requirements have improved their capacity to absorb economic shocks.More news: How Verizon hopes to grab digital ad dollars with Yahoo