Trump Reverses Crisis Measures for the Banks. US President Trump has signed a law that eases measures for banks set up ten years ago after the financial crisis. Tuesday, Trump got his law through Congress. He signed him today, writes eWorldNews.
In the new law, only the largest banks – those with a capital of more than 250 billion dollars – have to undergo measures such as the annual ‘stress tests’. Previously that limit was 50 billion dollars.
Besides, thanks to the more flexible regulation, there is more room for smaller banks to speculate with their customers’ money.
Although Trump regularly campaigned against Wall Street during his election campaign, reversing crisis measures – known in the US as Dodd-Frank – was one of his first election promises. According to him, the banking measures inhibit economic growth.
“The law I am signing today is reversing the regulations that crush small banks,” Trump said when signing.
Deregulation of bank rules has been high on the agenda for Republicans for years. The Democrats, who were at the base of Dodd-Frank, saw nothing in it.
Tuesday 33 of the 193 Democrats in the House voted for the new law. In March, there were 17 in 47 in the Senate. They want to radiate unity in the run-up to the interim elections later this year, to be re-elected.
The side note is that Trump and the Republicans would somewhat have reversed many more crisis measures, but the Democrats did not seem to poke. The core of the Dodd-Frank with the standards for the largest banks, therefore, remains intact. Some agencies that have been set up to provide extra supervision in the financial sector also continue to exist.