Trump Fixes Flaw in Post-crisis Regulatory Crackdown
By Greg Ip
When President Donald Trump ordered a comprehensive review of financial regulations last week, brows furrowed. “Very worrisome,” fretted Mario Draghi, president of the European Central Bank. Will banks “blow up our economy again?” asked Democratic senator Elizabeth Warren. The worriers should relax…. Karen Petrou, who runs the financial-services consulting firm Federal Financial Analytics, says banks have been forced to prioritize fee-generating business, often with wealthy customers. Financial companies, many web-based, can service smaller businesses and lower-income consumers. But some charge far more than banks. Moreover, Ms. Petrou notes, they may not survive the next downturn.