Rep. Scott Garrett and Sen. David Vitter have introduced bills that would that "would repeal the government's authority to designate non-bank financial institutions as systemically important," writes American Banker’s Kevin Wack.

"Dodd-Frank took the problem that led to the Wall Street bailouts, and made it the standard. Now we're seeing the problem expanding," said Vitter in a press release. "This bill is a modest first step in rolling back the expansion of the bailout state that Dodd-Frank enshrined."

So far the Financial Stability Oversight Council has used its authority to designate eight companies as systemically important, all of them financial utilities.

There's no real chance that this bill would be enacted in 2012, "but if Republicans win control of both houses of Congress and the White House in November, the measure could be considered next year as part of a package of changes to Dodd-Frank," writes Wack.

For the full piece see "GOP Lawmakers Introduce Bill to Repeal Systemic Designations" (may require subscription).