Passing a last-minute spending bill to avoid shutting down the U.S. government might be better than another self-inflicted budget crisis, but the deal on the table is nothing to be proud of. The measure approved by the House of Representatives last night and now before the Senate carries with it a set of so-called riders, which change policy in ways that haven't been examined or discussed. One of them is especially troublesome. It weakens the Dodd-Frank financial reforms.
The rider in question removes the so-called swaps push-out rule, which was intended to reduce the risks posed by the largest U.S. banks' trading in derivatives. Without it, regulators will have to work harder in other areas to promote stability.