By Emily Stephenson
WASHINGTON (Reuters) - The White House warned on Monday that President Barack Obama would veto Republican-backed legislation in the U.S. House of Representatives that would scale back financial reforms, including the Volcker rule.
Revamping the 2010 Dodd-Frank financial oversight law is a top priority for Republican Party leaders, who took control of both houses of the U.S. Congress this year following big wins in November's midterm elections.
Shortly after returning to Washington last week, Republicans began pushing a bill that scales back several regulations, including the Volcker rule, which bans banks from making risky bets with their own money and prohibits certain investments.
The new legislation would delay for two years a provision that applies to collateralized loan obligations, or securitized bundles of business loans.
"These reforms help protect hard-working families in everything from saving for retirement to the ability of small businesses to access credit through a stable financial system," the White House said in a statement announcing the veto threat.
Republicans brought the legislation up before the full House last week under special rules intended to allow lawmakers to pass it quickly. But they failed to round up enough votes after Democrats slammed the bill as an attempt to undo the 2010 law.
Conservative leaders have not given up on the plan and are considering the legislation again this week. It would still need to pass the U.S. Senate, where Republicans hold a slimmer majority, before it would reach Obama.
The White House also threatened to veto another House bill that would impose more hurdles on the legal process that regulators and other federal agencies must follow before adopting new rules.
The bill would force regulators to consider their legal authority and potential costs and benefits before writing rules. The White House said it would keep government agencies from doing their jobs.