The Trump administration has a plan for overhauling banking and financial regulation, and is eager to see the government relax many of the rules put in place after the 2008 financial crisis.
The plan urges agencies to change or relax many of the regulations that bankers find objectionable, including annual stress tests to ensure that lenders can weather downturns, trading rules, and the powers of consumer finance watchdogs.
The philosophy underlying the plan is that the relaxation of regulation will spur lending and job growth. However, Democrats are critical of the plan and consider it as a Christmas list inspired by the big banks. Senator Sherrod Brown, the ranking Democrat on the Senate Banking Committee says that “too many hardworking Americans still haven’t fully recovered from the financial crisis, and Washington should be focused on protecting them by holding Wall Street accountable, not doing its bidding.”
Naturally, the banking industry is in favor of the plan, but it’s uncertain how quickly the regulators can or will act on the recommendations. Many key positions in the Federal Reserve, the Federal Deposit Insurance Corp., and the Consumer Financial Protection Bureau remain unfilled. Moreover some of the most unpopular regulations like the Volcker Rule on proprietary trading, were the product of multiple agencies and will take complicated cooperative efforts to change.
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Trump Administration Calls for Overhaul of Wall Street Rules | Wealth Management