WASHINGTON — House Majority Leader Eric Cantor's loss to an unknown Tea Party challenger sheds new light on the deep divisions in the Republican Party, which is ultimately likely to have a large impact on the debate over financial policy.

Cantor's surprising upset in the Virginia Republican primary earlier this month puts to rest speculation that the Tea Party is dead. The libertarian strain of the party has often clashed with the more business-friendly wing of the GOP in recent years, creating fresh headaches for banks on issues including housing finance reform, the debt ceiling and government programs like flood insurance.

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