SETBACK

GOP Senators Don Tuxedos, Vote to Kill Consumer-Protection Rule

Banks, business groups had urged Republicans to scrap the consumer-oriented regulation.

Senate Republicans, many of them in tuxedos for a gala that evening, on Tuesday night voted in favor of killing an Obama-era regulation that bans Wall Street banks and credit-card companies from using forced arbitration clauses against American consumers. Vice President Mike Pence cast the tie-breaking vote to effectively nullify the regulation, which was widely seen as a crucial protection for consumers. If the resolution to scrap the rule is approved by President Trump, the move gives banks and credit-card companies a green light to ban consumers from filing class-action lawsuits, requiring them to use an arbitrator in disputes. Ahead of the vote, Sen. Elizabeth Warren (D-MA) called out Trump and Pence directly to condemn the resolution. “President Trump, Mike Pence works for you... You’ve gone on and on and on about how strong you are, about how tough you are, and about how you are going to stand up to Wall Street,” she said. Major banks and other business groups had urged GOP lawmakers to scrap the rule, claiming consumers would be better off using arbitration.