What Would Simpler Bank Regulations Mean for You?
I was recently a guest on Fox Business’s show “Countdown to the Closing Bell with Liz Claman” where I talked about the prospect of simpler banking regulations under the Trump administration. Here’s a quick summary of what I talked about.
Donald Trump has rolled back the Dodd-Frank Act, which restricted the ability of many small banks to make loans to small business owners. Back in 2007, as an original founder and trustee of a community bank in Massachusetts, NuVo Bank, now know as Merchants Bank, the Dodd-Frank Act strangled our ability to loan money to small businesses. Small businesses make up 80% of this economy, and now they will be able to access capital much easier. That’s good for jobs and growth.
When small banks were held to the same standards as the big banks, it didn’t work. However, does this mean all of the Dodd-Frank Act should be torched?
With President Trump’s first action, Congress will have to get involved and trim down the Dodd-Frank Act. However, the biggest piece to be trimmed is the bureaucracy. The notion that more regulation will prevent things from happening is wrong.The free markets need to be free and the free markets will determine what’s in the best interest of businesses and consumers. When the smaller banks are able to release that capital to smaller businesses, the results will be exponential.
To catch my full appearance, just click play on the video above. Thank you for watching. Let me know your views on this topic. Just send me your email at email@example.com.