Senate vote to weaken Dodd-Frank risks another financial crisis

With the 10th anniversary of Bear Stearns’ collapse coming up this week, leave it to Congress to find the perfect way to mark the occasion — by voting for another financial crisis.

This effectively is what the Senate risked late Wednesday in approving, by a vote of 67-to-31, a revision of the Dodd-Frank financial reform law that weakens federal oversight of banks with up to $250 billion in assets.

Sold as a softening of regulations hurting community banks (whose real problem is that bigger competitors provide mortgages, credit cards, and other products and services for less), the Senate bill actually favors huge players such as PNC Financial Services Group PNC, -1.50% and SunTrust Banks STI, -1.67% .

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