STATEMENT: On the Heels of a Huge Giveaway to Wealthy Corporations and Wall Street, U.S. House Votes to Deregulate 30 of the Largest U.S. Banks, Says CAP’s Marc Jarsulic
Washington, D.C. — Marc Jarsulic, vice president of economic policy at the Center for American Progress, released the following statement today after the U.S. House of Representatives approved H.R. 3312, the so-called Systemic Risk Designation Improvement Act of 2017.
On the heels of voting on a massive tax giveaway to the wealthy and corporations, including Wall Street banks, the U.S. House of Representatives just voted to deregulate 30 of the largest 38 banks in the United States. These banks would no longer face tailored enhanced regulations such as stress testing, capital and liquidity requirements, resolution planning, and more, unless Trump-appointed regulators re-apply the standards through a cumbersome process. These banks collectively hold $5.3 trillion in assets—or 25 percent of the banking sector’s assets—and received $65 billion in Troubled Asset Relief Program bailout funds during the 2007-2008 financial crisis.
The universe of banks deregulated by this bill also includes the U.S. holding companies of massive, scandal-plagued foreign banks such as Deutsche Bank. Dodd-Frank’s enhanced regulations for the largest banks are already sensibly tailored, so this bill is simply a way to deregulate a massive swath of the banking sector. Financial instability and financial crises seriously damage long-term economic growth, so instead of making the financial system more vulnerable to another shock, regulators should be strengthening financial stability safeguards.
- Resisting Financial Deregulation by Gregg Gelzinis, Andy Green, and Marc Jarsulic
- Op-Ed: Scrapping $50B threshold will let 30 big banks off the hook by Gregg Gelzinis
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