The push to get rid of the Volcker Rule and other financial
regulations introduced in the aftermath of the 2007-09 financial crisis is
short-sighted and dangerous. Harvard economist Larry Summers has written an excellent column on the topic:
Will Trump administration roll-back post-crisis financial
regulations?
“President Trump plans to sign an executive order on Friday to
ease regulations put in place after the 2008 financial crisis to rein in Wall
Street, according to a White House spokeswoman.
The move would address another one of Trump’s campaign promises:
Dismantling 2010’s financial reform legislation, known as Dodd Frank. The
legislation forced banks to take various steps to prevent another financial
crisis, including holding more capital and taking yearly “stress tests” to
prove they could withstand economic turbulence. The financial industry,
particularly its small community banks, complained the rules went too far”
Related:
Did the Dodd-Frank Bill hurt the Banking
Sector?
What is the Volcker Rule?
Volcker Rule and
Goldman Sachs – History Lesson (from 2010)