Dodd-Frank is falling out of favor. It has been 10 years dodd frank act summary forex exchange the demise of Bear Stearns.
Keep an eye on gold and the global ticking debt bomb! I often remind investors to look past the negative and find the positive. Last week provided no shortage of big splashy headline stories, from yet another high-profile personnel shakeup at the White House to a nail-biter special election in Pennsylvania’s 18th Congressional District, from Russia’s alleged nerve agent attack on a former double-agent spy to a tragic bridge collapse in Miami. If this is all you were focused on, you might have missed what I believe was the most significant development of the past few days. If the House also approves the bill, President Donald Trump is expected to sign it into law, thereby providing much-needed relief to smaller lenders and community banks that millions of rural Americans and small businesses depend on. Aside from tax reform, I think the relaxation of Dodd-Frank will be seen as Trump’s crowning fiscal achievement so far, as it has the potential to contribute greatly toward his goal of at least 3 percent economic growth.
Investors piled into an ETF that holds small to midsize banks following the news last week. 606 million in daily inflows, a record for the fund, according to Bloomberg. The most sweeping and complex financial reform package since the Great Depression, Dodd-Frank was drafted in response to the financial crisis—yet few believe it would do much in the way of preventing another such crisis. Community Banks Are Vital to the U. Economy The cumulative effect of the rollback will be to lower compliance costs and allow banks to better service clients and shareholders alike. I can’t stress enough how important this is.
10 billion in assets—are tremendously vital to the U. Last year, I included Dodd-Frank in a list of the five costliest financial regulations of the past 20 years. Since 2010, the legislation has undeniably had a negative effect on the banking industry, driving dozens of institutions to ruin and giving borrowers far fewer options. Between the year of its signing and 2014, the U. Dodd-Frank Falling out of Favor Support for Dodd-Frank is waning more and more. For his part, Buffett believes that, as a result of the law, the U. Dodd-Frank stripped the Fed of its ability to act.