WASHINGTON – The House passed a bill Thursday 254-161 that would remove the strict $50 billion-asset threshold that subjects banks to tougher supervisory requirements, giving regulators more flexibility over what institutions are considered systemically important.

The bill was supported by most industry trade groups and Republican lawmakers, who pointed to comments by former House Financial Services Committee Chairman Barney Frank, D-Mass. Frank acknowledged that the $50 billion threshold wasn't a perfect measure of systemic importance.

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