Trump Signs Biggest Rollback of Bank Rules Since Dodd-Frank Act

Donald Trump used a campaign rally at Grand Rapids Michigan in 2016 to promise to throw out what he called stifling regulations that strengthened regulators’ oversight of banks

Among the biggest losers are bigger regional banks such as Capital One Financial Corp. and PNC Financial Services Group Inc., which would keep their SIFI designations. A lone Democrat also was there: Sen. Jon Tester. Crapo and fellow Idaho Sen.

"This bill's passage marks one of our greatest achievements in the 115th Congress, but should not be unexpected", Crapo said in an emailed statement.

"Being able to know your banker and they care about you, and they know your family, and they know that you're good for what your situation is", Tenney said.

Dodd-Frank was passed in 2010 to reduce risks in the USA financial system after the credit crisis of 2008. "One-size-fits-all, those rules just don't work". Banks larger than $50 billion dollars in capital were considered too critical to the US financial system to fail without catastrophic results to the economy.

The new sweeping reforms would save community banks that were being driven out of business by the rules and allow them to start lending again, said the president. But critics charge it opens the financial system back up to the abuse and risky behavior that crippled the US economy a decade ago - and does so at a time when financial firms are posting record profits.

The new law, which originated in the Senate and was passed by the House Tuesday, did not go as far as the industry and many Republicans wanted. Republicans overwhelmingly supported the bill, while Democrats remain divided over it. Heidi Heitkamp of North Dakota, among the 16 Democrats who voted for the legislation when it passed the Senate in March.

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The final measure represents a compromise that leaves the overall structure of the post-financial-crisis rules in place, and does not touch the Consumer Financial Protection Bureau, a watchdog agency created after the crisis.

He signed into law the Economic Growth, Regulatory Relief, and Consumer Protection Act, the first major rollback of the bank regulation laws put in place after the 2007-2008 financial crisis.

"The legislation I'm signing today rolls back the crippling Dodd-Frank regulations that are crushing small banks", Trump said at the bill signing. It raises to $250 billion from $50 billion the asset threshold for lenders to face stricter Federal Reserve oversight as systemically important financial institutions.

Other measures mostly benefit smaller banks, although Trump indicated that policymakers may be interested in making further changes to how larger banks are regulated.

Many experts believe those banks have been unduly burdened by the Obama-era package of rules known as Dodd-Frank.

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