Financial Services Deregulation

April 6, 2018 • Volume 28, Issue 13
Should Congress ease up on Wall Street?
By Jonathan Broder


Signs in Birmingham, Ala., advertise payday loan stores (Cover: Getty Images/Bloomberg/Gary Tramontina)
Signs in Birmingham, Ala., advertise payday loan stores, which lend relatively small sums of money, often at high interest rates, to lower-income Americans. Critics say payday loans trap borrowers in a cycle of escalating debt, but advocates say they aid people in need of fast cash. (Cover: Getty Images/Bloomberg/Gary Tramontina)

The Trump administration is seeking to weaken the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, a broad set of regulations aimed at preventing a repeat of the 2007–09 financial crisis. The law requires banks and other financial companies to set aside large cash reserves to deal with problem loans or other failures that could drag down the entire economy. In addition, Dodd-Frank cracks down on consumer loan fraud and bars financial institutions from making speculative investments with their own capital. Many Democrats and consumer groups argue that Dodd-Frank has added crucial safeguards without hurting the banking industry's profitability. But industry officials and conservative Republicans contend that Dodd-Frank has stifled economic growth and hurt consumers by over-regulating banks, credit card companies, payday lenders and other financial services firms. Meanwhile, some analysts worry that the largest banks could still pose a threat to the nation's economy if growth slows.

ISSUE TRACKER for Related Reports
Jan. 20, 2023  The Future of Cryptocurrency
Apr. 06, 2018  Financial Services Deregulation
Sep. 26, 2014  Digital Currency
Oct. 05, 2012  Euro Crisis
Jan. 20, 2012  Financial Misconduct
Jan. 13, 2012  ‘Occupy’ Movement
Oct. 24, 2008  Financial Bailout Updated
Sep. 01, 2000  The Federal Reserve
Jun. 22, 1990  S&L Bailout: Assessing the Impact
Nov. 04, 1988  Behind the S&L Crisis
Apr. 26, 1985  New Era in Banking
Nov. 18, 1983  Bankruptcy's Thriving Business
Aug. 07, 1981  Banking Deregulation
Jul. 19, 1974  Banking Stability
Jul. 17, 1968  Banking Innovations
May 06, 1964  Monetary Policy in Prosperity
May 16, 1940  Revision of the Securities Acts
Feb. 27, 1937  Expansion of Branch Banking
Sep. 03, 1935  The Decline of Commercial Banking
Dec. 11, 1934  Proposals for a Government-Owned Central Bank
Sep. 12, 1934  Bank Reserves and Credit Inflation
Nov. 27, 1933  Bank Credit in Depression and Recovery
Aug. 12, 1933  Closed Banks and Banking Reform
Apr. 04, 1933  Unified Control of Banking
Apr. 09, 1932  The Glass Banking Bill
Mar. 24, 1932  The Guaranty of Bank Deposits
Apr. 17, 1930  The International Bank and the Gold Standard
Feb. 08, 1930  Branch Banking and Chain Banking
Apr. 29, 1929  Mergers of Banking Institutions
Oct. 28, 1927  The Federal Reserve Rate Controversy
May 21, 1927  Labor Banking and Finance Since 1920
Jan. 31, 1924  The Northwestern Bank Failures and the Attack on Treasury Savings Certificates
Dec. 01, 1923  Why State Banks Do Not Join the Federal Reserve System, the Effect on the System and the Issues Involved
Nov. 23, 1923  Branch Bank Controversy
Congress Actions
Consumer Behavior
Consumer Credit and Debt
Economic Crises
Financial Institutions
General International Relations
Insurance Industry
International Finance
Investment and the Stock Market
Mortgage Loans and Home Finance
Party Politics
Regulation and Deregulation