President Trump Signs Biggest Rollback of Bank Rules Since Dodd-Frank Act

Lloyd Doyle
May 26, 2018

A swathe of banking rules enacted by President Obama after the financial crisis will be rolled back after Congress voted last night to ease restrictions on all but the largest American financial companies.

"This is all about the Dodd-Frank disaster, and they fixed it or at least have gone a long way to fixing it", Trump said at the signing ceremony.

UTICA, N.Y. -President Trump fulfilled his promise to "do a big number" on the Dodd-Frank Wall Street Reform and Consumer Protection Act Thursday evening.

The new law raises the threshold at which banks are deemed so big and plugged into the financial grid that if one were to fail it would cause major havoc.

The legislation eases oversight of all banks below $250 billion in assets, and exempts small community banks from a host of stricter rules and oversight established by the 2010 Dodd-Frank financial reform law.

The House voted 258 to 159 to approve the legislation Tuesday, giving final approval to a compromise bill that won support from moderate Senate Democrats earlier this year. A lone Democrat also was there: Sen. The bill passed the Senate with support from 17 members of the Democratic caucus, but it was fiercely opposed by progressives in an at intraparty fight that at times turned personal.

The Republican-led legislation cleared Congress on Tuesday with the help of some Democrats' votes and allowed Trump to realize his campaign pledge of dismantling the landmark Dodd-Frank law.

The law makes a fivefold increase, to $250 billion, in the level of assets at which banks are deemed to pose a major threat if they fail.

The legislation eases regulations on all but a handful of the nation's largest banks, and marks a significant victory in Trump's efforts to cut rules in a bid to spur economic growth. It exempts some small and regional banks from the most stringent regulations, and also loosens rules aimed at protecting the biggest banks from sudden collapse.

The White House says it hopes Trump will receive the bill before Memorial Day to speed its signing.

Tenney said her two bills "actually reduce some of the one-size-fits-all regulatory burden that Dodd-Frank put on our small community banks". The smaller banks are now no longer subject to stress tests. The banks also will be excused from submitting plans called "living wills" that spell out how a bank would sell off assets or be liquidated in the event of failure so it wouldn't create chaos in the financial system.

Other reports by Iphone Fresh

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