July 23, 2016 Weekly Address: Protecting the Progress We’ve Made with Wall Street Reform WASHINGTON, DC — In this week's address, Senator Elizabeth Warren joined President Obama to discuss how far we've come since the financial crisis, when the recklessness of Wall Street caused millions of Americans to lose their jobs, homes, and savings. Senator Warren underscored the importance of the Wall Street reforms the President signed into law, which included the strongest consumer protections in generations. In addition to making the financial system safer and more resilient, these reforms also established the first-ever Consumer Financial Protection Bureau (CFPB), which holds banks, credit card companies, mortgage lenders, and others accountable, and protects consumers from abuses and deceptive practices. This past Thursday, July 21, marked six years since the President signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law and the five year anniversary of the creation of the CFPB. Thanks to these reforms, the President reiterated the economy is stronger and more durable today than it was before the crisis. That's why President Obama is going to keep fighting to protect the progress we've made reforming Wall Street from attacks, because hard-working Americans who play by the rules should expect Wall Street to play by the rules, too.
Donald Trump Says He Would Dismantle Dodd-Frank Wall Street Regulation by Reuters May 18, 2016, 4:04 AM EDT “Dodd-Frank has made it impossible for bankers to function,” he says. Republican presidential candidate Donald Trump said on Tuesday that sweeping financial reforms put in place under President Barack Obama were harming the economy and he would dismantle nearly all of them. Trump told Reuters in an interview that he would release a plan in about two weeks for overhauling the 2010 financial regulatory law known as Dodd-Frank. “Dodd-Frank has made it impossible for bankers to function,” the presumptive Republican nominee said. “It makes it very hard for bankers to loan money for people to create jobs, for people with businesses to create jobs. And that has to stop.” Pressed on the extent of the changes he wanted to make, Trump said, “it will be close to dismantling of Dodd-Frank.” Reacting on Twitter to Trump’s comment, Democratic presidential front-runner Hillary Clinton called it a “reckless idea” that would “leave middle-class families out to dry.” Dodd-Frank, passed in the aftermath of the 2007-2009 financial crisis, forced U.S. banks to reduce their reliance on debt for funding and to craft “living wills,” or blueprints for winding them down in a crisis. The law created a new agency, the Consumer Financial Protection Bureau, to oversee consumer financial products such as mortgages and gave regulators new powers over large non-bank financial companies. Industry Presses for Tweaks Republicans in Congress have pushed to ease the requirements on small- and medium-sized banks and to make it more difficult for regulators to introduce new rules. They have also argued for getting rid of the consumer financial protection agency. Banks and other financial firms have spent six years and millions of dollars adjusting their operations to comply with the law. Bank lobbyists have generally pushed for changes to make complying easier, rather than a wholesale rewrite. “Every law can be improved, and Dodd-Frank is no exception. Sometimes there are drafting errors. Sometimes a good idea in theory turns out to be unworkable after a closer look in the light of day,” said John Hall, a spokesman for the American Bankers Association. Alison Hawkins, a spokesman for the Financial Services Roundtable, a Washington-based financial industry trade group, said the group wanted to know more about Trump’s plan, and added “some fixes to Dodd-Frank will benefit consumers and the economy.” On Capitol Hill, Republican Representative Jeb Hensarling, the chairman of the House Financial Services Committee, plans to release his own financial regulation plan in the coming weeks, according to his spokeswoman, Sarah Rozier. “Mr. Trump is right, Dodd-Frank isn’t working,” Rozier said. She added that Hensarling, who has endorsed Trump, has not discussed his plan with any of the presidential candidates. But Dennis Kelleher of Better Markets, a group that favors tighter regulation of Wall Street, said Trump’s plan would be “a slap in the face to the American people who have suffered so much from the 2008 crash.” Trump declined to offer specifics on his plan, but said it would address whether institutions should separate commercial banking activities from investment banking. He said even under the new plan, the banking system would not be perfect. “Will there be bad loans made? Yes. But there are bad loans made now with Dodd-Frank,” Trump said. Trump was reluctant to discuss specifics on his ideas for the economy before his upcoming speech, but he praised Federal Reserve Chairman Janet Yellen, saying he approved of her decision to keep interest rates low. Trump has said in the past he would replace Yellen once her term as Fed chair ended. “I’m not a person that thinks Janet Yellen is doing a bad job,” he told Reuters. “I would rather have a Republican in the position but I am not the enemy of Janet Yellen.”
He just says whatever the idiots listening to him will believe and they'll believe anything. Remember, these are the same people that are so angry with the GOP that they kicked everyone of their candidates to the curb. They were so angry that they had been lied to for so long that they through their support behind a guy that has zero political experience thinking that he would be their savior. He isn't their savior, he is just the next one in line to use the gullible rubes that they never fail to be. If they only realized that it isn't the people that take advantage of their gullibility that is their problem, it is their uneducated, backwards, bigoted attitudes that is their real problem. They are dinosaurs and they are going extinct but too stupid and stubborn to know their fate.
And here is why! To think Dodd-Frank was created to help small bank and inhibit "too big to fail". Regulatory compliance can be a particular challenge for small banks with limited compliance expertise. Regulatory expenses absorb a larger percentage of small banks’ budgets than of their larger counterparts’ budgets. Although correlation is not evidence of causation, as financial regulation has increased since 2000, so has banking concentration. The Dodd-Frank Act, passed in 2010, imposes a new set of regulations that are disproportionately burdensome to small banks. Moreover, by designating the largest financial institutions as “systemically important,” Dodd-Frank creates a market expectation that designated firms are too big to fail and generates funding and other competitive advantages for the largest US banks. Since the second quarter of 2010—immediately before the July passage of Dodd-Frank—to the third quarter of 2013, the United States lost 650, or 9.5 percent, of its small banks. Small banks’ share of US banking assets and domestic deposits has decreased 18.6 percent and 9.8 percent, respectively, and the five largest US banks appear to have absorbed much of this market share. Mounting regulatory costs threaten to accelerate the shift towards big banks and away from small banks that have long been important members of the financial industry and the local communities they serve. Read more at: http://www.nationalreview.com/corne...and-24-percent-fewer-small-banks-veronique-de With more than 22,000 pages of regulations, the destabilizing consequences of the Dodd-Frank Wall Street Reform and Consumer Protection Act are numerous. One notable concern is that the law has forced consolidation of the United States banking system. The number of community banks (those with less than $10 billion in assets) shrank 14 percent between Dodd-Frank’s passage in 2010 and late 2014. Surely, consolidation is driven by many factors, some of which are good. It is also no recent trend, but neither is regulatory growth: between 1997 and 2008, banking regulations grew 18 percent. The law’s “Wall Street” focus snares small banks in a complex web of rules designed for larger banks, forcing them to divert resources to compliance, or worse, to close their doors. When regulations – not consumers – drive consolidation, banking system risk increases. Dodd-Frank’s “Wall Street” focus snares community banks in an increasingly complex web of rules designed for larger banks. As such, the law forces well-managed institutions to unnecessarily divert resources to compliance (survey data shows community banks are doing just that), or worse, to close their doors. Minneapolis Fed research suggests that adding just two members to the compliance department would make a third of the smallest banks unprofitable. http://www.nytimes.com/roomfordebat...-system/dodd-frank-is-hurting-community-banks