Proposed Changes To Dodd-Frank Regulations

With what I know of the part that Senator Dodd and Rep. Frank played in the housing bubble that has now sunk our economy (and much of the rest of the industrialized world's economy), it is difficult for me to look at the phrase "Dodd-Frank" (the financial regulation bill that Congress passed in 2010) without wanting to both laugh and cry.  It would be like a law to more severely punish mass murder authored by Charles Manson and Charles Ng.

Nonetheless, the poorly thought out bill is apparently causing problems to banks, and regulators are looking at ways to help them out (what a shock).  As The Shekel points out:

Now regulators are strongly considering exempting what has been shown to be quite shaky sovereign debt from the rule and thus open US Banks to some very real system-wide risk. 

What could possibly go wrong?