Less oversight and capital requirements increase short term bank leverage and profits at the cost of longer term financial stability and taxpayer underwriting.
2006: This CEO says it’s safe to deregulate his big bank.
2008: He’s proven wrong when his bank gets $1.4B taxpayer bailout.
2017: He’s back lobbying Congress to deregulate again.
This week: A bunch of Senators side with him over taxpayers by voting for the #BankLobbyistAct. pic.twitter.com/UmcYLgf2DZ— Elizabeth Warren (@SenWarren) March 8, 2018
Also see Reversal of Wall Street regulations risks another financial crisis:
“It is grossly irresponsible at this late very stage of the business cycle, to add legislative deregulation of the biggest banks in the country to widespread regulatory agency deregulation and non-enforcement,” [Better Markets President, Dennis] Kelleher said. “Unleashing the biggest banks is just asking for another horrific crash.”
The bills proponents, which include 13 Democrats, argue that the Dodd-Frank rules went too far and became overly cumbersome for all but the biggest Wall Street banks. Their strong financial performance, Kelleher says, suggests otherwise.
“Every single argument for deregulation has been objectively rebutted by rising if not historic bank revenues, profits, bonuses and lending,” he said.
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