Tuesday, May 2, 2017

Bank on this

Powerline tries to instruct the Associated Press on how President Trump views regulations.
I don’t know whether restoring something approximating the Glass-Steagall separation between commercial and investment banking is a good idea or not. Some conservatives and some liberals favor it. It would, indeed, result in the breakup of some of America’s largest banks.
Dodd-Frank, on the other hand, is a horrible law that is criticized by nearly everyone who has to deal with it. Dodd-Frank imposes so many onerous (and often pointless) requirements that complying with them costs more money than many small and medium-sized banks earn. The result has been a rapid decline in the number of community banks. This has hurt small businesses, since smaller banks are generally the ones that loan to smaller businesses.

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