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This is actually a good thing, the regulations were a big burden to small banks. The roll back doesnt affect the "too big to fall" institutions but it really e
by woodie_w 8y ago
This is actually a good thing, the regulations were a big burden to small banks. The roll back doesnt affect the "too big to fall" institutions but it really eases the pressure on local and regional players.
Dodd-Frank costs banks a lot of many but it doesnt scale with the size of the bank, smaller banks are subject to the same constraints as the biggest banks though they are not capable of causing a systemic crash. They should not be penalized for the actions of the bigger players.
- eganist 8y ago> smaller banks are subject to the same constraints as the biggest banks though they are not capable of causing a systemic crash. Contagion (https://en.wikipedia.org/wiki/Financial_contagion https://en.wikipedia.org/wiki/Financial_contagion) can still take place with a (literal) local bankruptcy depending on the exposure of larger institutions to that smaller firm's losses.