Banks’ surprising request: Don’t trash Dodd-Frank

by Ryan Smith09 Dec 2016
Big banks have delivered a surprising request to President-elect Donald Trump: they don’t want him to kill Dodd-Frank.

“We’re not asking for wholesale throwing out Dodd-Frank,” JPMorgan Chase CEO Jamie Dimon said at a conference this week.

That’s not what many – including House Republicans – want to hear. Many have called for a full repeal of the controversial financial law, according to a Wall Street Journal report. Rep. Jeb Hensarling (R-Texas), chairman of the House Financial Services Committee, has even proposed legislation to entirely replace Dodd-Frank. Trump’s team has talked about rolling back the law, though it hasn’t explicitly said it would push for full repeal.

The banks do want modification of Dodd-Frank, according to the Journal. Rather than repeal, big banks are pushing for the government to make “regulation simpler and less costly, but don’t return banking to the Wild West days that preceded the financial crisis,” the Journal reported.

The Journal noted that in the years since Dodd-Frank, banks have spent hundreds of millions of dollars becoming compliant to the regulations introduced under the new regime. After all that time and money, upending the regulatory landscape yet again would leave in disarray business models they’ve worked for years to perfect.

The biggest concern right now, according to big banks, is that no new regulations get thrown their way.

“The first thing I would ask for is nothing new, no new rules,” John Gerspach, head of finance at Citigroup, said at the conference. “If you haven’t figured out yet how all the existing rules work together, don’t put on anything else.”
 

COMMENTS

  • by Heath | 12/9/2016 1:11:30 PM

    They want to keep the mortgage broker comp rules, so they always have the advantage over the mortgage brokers.

  • by Vernon | 12/9/2016 1:36:45 PM

    Exactly what Heath said.

    I use to think Regulation was to protect the consumer. I now know the Regulation is to Protect the Oligopolies like the "Big Banks". If we deregulate, the small broker/banker will have less overhead and be a tougher competitor agains the banks. We can then make some $$$

    I hope congress guts it all including the Christmas Wish List:
    1) Dodd Frank
    2) AMC
    3) TRID and the stupid disclosures
    4) LO Comp.
    5) QM

    Just to name a few

    This would be a great start.

    So Santa Trump!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  • by larry | 12/9/2016 1:41:42 PM

    screw the big banks

Poll

Is TILA-RESPA a good or bad thing long term?