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Lower odds for regulatory relief
Sen. Mike Crapo, R-Idaho. Bloomberg News
Banks and credit unions have been clamoring for regulatory relief, arguing that seven years after the passage of Dodd-Frank is a good time to review which parts of it are necessary and which parts might go too far.

But the clock is ticking to pass a bill rolling back financial regulations.

Negotiations at the Senate Banking Committee appear to be maturing with moderate Democrats in states that Trump carried in the general election negotiating with panel chairman Sen. Mike Crapo, R-Idaho.

The House already passed the Financial Choice Act earlier this year, which was shepherded through the lower chamber by House Financial Services Committee Chairman Jeb Hensarling. That bill goes much further than what can get 60 votes in the Senate, but Hensarling appears ready to agree to whatever the Senate can pass.

However, if Democrats see good chances for a wave election next year, that may disincentivize them to cut any deals now. If a reg relief bill fails to pass and Democrats retake the House, the odds of relief go way down, particularly as many candidates are likely to be running on more progressive platforms. The liberal caucus views Dodd-Frank as a crowning party achievement and generally opposes any changes to the law.