Make Small Banks Great Again? Industry Buoyed by Trump
By Jeff Bater
The deconstruction of Dodd-Frank Act that’s expected under President Donald Trump may make small and midsize banks great again. Smaller institutions—rather than the nation’s megabanks—may well have the most to gain from a rollback of the 2010 law, if recent legislative proposals and comments by Trump advisers are any indication. …Trump may be tugged by two forces as he tries putting his stamp on financial regulation: economic nationalists and libertarians, according to Karen Shaw Petrou, a banking analyst with Federal Financial Analytics. “Economic nationalists do not care much about a ten percent leverage rule for all their disdain of Dodd-Frank regulatory burden,” she wrote in a note Jan. 19. “What they want is a bigger, better, and if necessary even badder banking system that makes America even greater without resort to foreign capital.”