Regional banks continue fight over Dodd-Frank, despite Fed relief
By Andrew Hanna
Regional banks score a victory under implied stress test changes, but face long odds in revisiting the Dodd-Frank reforms this year. The Federal Reserve is making good on a pledge to ease regulations for many of the country’s regional banks, but midsized lenders have shown no indication they’ll relent in their push for bigger carve outs from Congress. Regional banks argue they’re unfairly caught in post-financial crisis rules designed for “too-big-to-fail” financial institutions and will likely demand more after a key Fed official offered relief recently in the form of easier stress tests…. As the debate moves forward, the move by the Fed could help the regional banks illustrate that their concerns about overregulation are legitimate. “I think it validates some of the arguments they’ve been making by the Fed responding to them in this way,” said Karen Shaw Petrou, managing partner at the banking consultancy Federal Financial Analytics.
http://www.politico.com/story/2016/06/regional-banks-continue-fight-over-dodd-frank-despite-fed-relief-224420
