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He said he wanted to "dismantle" Dodd-frank entirely. So he wanted to deregulate much more than this bill does. [0]: https://www.nytimes.com/2017/01/30/us/poli

He said he wanted to "dismantle" Dodd-frank entirely. So he wanted to deregulate much more than this bill does. [0]: https://www.nytimes.com/2017/01/30/us/politics/trump-dodd-frank-regulations.html https://www.nytimes.com/2017/01/30/us/politics/trump-dodd-fr...

dmix 8y ago
The Treasury Secretary Steven Mnuchin more eloquently broke down their plan during his hearing in where he stated his primary goal is reducing the spurious regulations added to small/medium banks follow the crisis, while leaving the regulations for the large ones (most of which caused the original crisis). Which is exactly what this bill does by excluding big banks from the new reductions in regulation. He provided many examples and cited data showing how the number of small banks has drastically shrunk since the regulation has passed, and directly related to it, causing the US banking market to further consolidate. Ironically, there are now 5 major banks who control most of the market now largely as a result, while competition from smaller firms has declined drastically. So much for ending "too big to fail". Like most well intentioned democratic policy during the last decade intended to punish the larger banks for their destructive behavior, if anything they've come our stronger. Not to mention the bail outs with completely neutered terms in terms of bonuses and other potential disincentives for bad behavior. It's one thing to say you want to restrict the power of banks to manipulate markets and generate risk, it's another to actually do it. The fact this bill only benefitted small firms and kept the major banks under check sounds completely consistent with the Mnuchin's promises during his congressional hearing. He's on of the few Trump cabinet that seems highly competent and well suited for the job. I'm happy he has stuck around. https://www.c-span.org/video/?421858-1/treasury-secretary-nominee-steven-mnuchin-testifies-confirmation-hearing https://www.c-span.org/video/?421858-1/treasury-secretary-no...
- tfandango 8y ago
  Thank you. I've been disturbed by much (though not all) of the coverage of this as if it's a complete repeal of Dodd-Frank.

dmix 8y ago

The Treasury Secretary Steven Mnuchin more eloquently broke down their plan during his hearing in where he stated his primary goal is reducing the spurious regulations added to small/medium banks follow the crisis, while leaving the regulations for the large ones (most of which caused the original crisis). Which is exactly what this bill does by excluding big banks from the new reductions in regulation. He provided many examples and cited data showing how the number of small banks has drastically shrunk since the regulation has passed, and directly related to it, causing the US banking market to further consolidate. Ironically, there are now 5 major banks who control most of the market now largely as a result, while competition from smaller firms has declined drastically. So much for ending "too big to fail". Like most well intentioned democratic policy during the last decade intended to punish the larger banks for their destructive behavior, if anything they've come our stronger. Not to mention the bail outs with completely neutered terms in terms of bonuses and other potential disincentives for bad behavior. It's one thing to say you want to restrict the power of banks to manipulate markets and generate risk, it's another to actually do it. The fact this bill only benefitted small firms and kept the major banks under check sounds completely consistent with the Mnuchin's promises during his congressional hearing. He's on of the few Trump cabinet that seems highly competent and well suited for the job. I'm happy he has stuck around. https://www.c-span.org/video/?421858-1/treasury-secretary-nominee-steven-mnuchin-testifies-confirmation-hearing https://www.c-span.org/video/?421858-1/treasury-secretary-no...

tfandango 8y ago
Thank you. I've been disturbed by much (though not all) of the coverage of this as if it's a complete repeal of Dodd-Frank.