By tomorrow, banking experts expect Senate passage of a bill that could make it easier for banks to expand.
The Trump administration and top Federal Reserve officials support the bipartisan legislation that would relax dozens of rules for smaller banking institutions. Texas Bankers Association’s John Heasley said when the Dodd Frank Act passed in 2010, it’s had an adverse effect on small to medium-sized banks.
“We’re not looking at a dismantling of the stronger regulation and enforcement that was put in in 2010. We’re looking at mainly the smaller banks that out there who are asking for some relief in order to make more loans in a less regulated environment,” said Heasley.
If this bill becomes law, he hopes more community banks that make mortgage loans will benefit, trickling down to customers.
“The bill makes it easier for banks to make mortgage loans without having to comply with some of the 2,000 pages of regulations that were put into place as a result of Dodd Frank,” said Heasley.
He said the economic collapse a decade ago was because the larger thrifts were making loans to anyone with a pulse, not weak banking regulations.
He said Elizabeth Warren, along with the Progressive Left, will oppose the bill just because of the polarity of politics in today’s world.