House Republicans view much of the 2010 Dodd-Frank financial law as unworkable and an unnecessary burden on American businesses, while many Democrats have vowed to defend it. In a vote that split across party lines, lawmakers voted 271 to 154 to approve the bill, and to send the measure to the US Senate for consideration.

While Democrats have slammed the bill, President Barack Obama has threatened to veto the legislation, if it reaches his desk.

The bill amended sections of the Dodd-Frank financial overhaul, passed by a Democratic-controlled Congress early in Barack Obama's presidency. In particular, the so-called Volcker rule bans banks from making risky bets with their own money and prohibits certain investments.

Altering Dodd-Frank is one of the highest priorities for the new Republican leadership, which sees it as excessive regulation that has hindered economic recovery.

The conservative Heritage Society, a good barometer of Republican thinking, said in a position paper the act "did virtually nothing to address the root causes of the financial crisis and simply expanded the federal safety net for financial firms. This approach has increased the likelihood of future financial crises and bailouts."

Among the most significant planned changes is a two-year extension to the deadline for banks to comply with a new rule for risky securities. Speculation in these securitized bundles of loans helped bring about the world financial crisis in 2008.

Democrats oppose the changes. Rep. Maxine Waters of California, the senior Democrat on the House Financial Services Committee, called it a "gift to a handful of the biggest Wall Street banks."

This is the second time the legislation has been discussed. Last week it passed the House by 276 to 146, but it failed as fast-track rules require a two-thirds majority. This time its pasage is likely, although it would still require approval by the Senate, where the Republican majority is smaller. Obama has threatened to veto the legislation.

sgb/cjc (AP, Reuters)