It is generally agreed that “deregulation” has played an important role in the ramp up of economic growth from 2 percent for the 2009-2016 period to the 3 percent rate experienced over the past 12 months. Its impact has occurred through a number of channels not the least of which is the expectation that, in future years, the burden of regulation will be significantly less, requiring fewer financial and management resources.
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In a reaction to the financial crisis, Congress passed the Dodd-Frank law. Although well-intended, the result of this law is an era of regulations that fails to decipher between Chase Bank, Bank of America and Safe 1 Credit Union. A $2 trillion Wall Street megabank has the similar compliance rules for those of us here serving Main Street. This makes no sense.
The Senate on Wednesday passed a milestone bank deregulation bill that would mark the biggest rollback of financial rules since the 2008 market meltdown. On a day when Wall Street was observing the 10th anniversary of the Bear Stearns investment bank bailout — a pivotal moment in the global financial crisis — the Senate agreed in a 67-31 bipartisan vote to overhaul a wide range of regulations imposed on small and large lenders in the years since.
Credit Union workers, small business owners and Senator Tom Carper gathered in Delaware on Monday afternoon to discuss the Economic Growth, Regulatory Relief, and Consumer Protection Act that is making it’s way to the U.S. Senate floor.
The Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155) is heading toward Senate passage, possibly as early as this week. The bill will surely make many small bankers happy, but it’s a stretch to say it would undo Dodd-Frank.