Last week, President Trump signed an executive order that set into motion future changes to banking regulations. While these changes won’t be revealed for some time, there is speculation what those changes could entail and how they could potentially affect the banking industry.
A recent, in-depth CNBC article confirms that Dodd-Frank that it isn’t just going away. As criticized as the law has been, it won’t be repealed. But there will be changes, and they could include:
- Cutting compliance costs, which, according to Federal Financial Analytics, have doubled to $70 billion or 23 percent of total expenses since Dodd-Frank was implemented
- Freeing smaller banks, like regional and community, from the same rules as larger ones
- Helping investment advisors who believe they've been targeted unfairly
- Changing the Consumer Financial Protection Bureau, including replacing its leader
In particular, it’s smaller banks that will gain more from future changes. Per CNBC, bigger banks will experience limited relief and “unlikely to find many sympathetic ears around Capitol Hill.”
Any changes to Dodd-Frank provisions, especially the law’s fiduciary rule, “won’t go down without a fight” — a “big fight,” adds CNBC. Bottom line: President Trump’s main goal in changing the law “is getting banks to lend money more aggressively.”