By Jesse Hamilton & Silla Brush
A U.S. Senate bill to ease rules for some banks has drawn fire as a giveaway to Wall Street, even on the presidential campaign trail. But to this giveaway, the biggest U.S. banks are saying, “No, thanks.”
Last week, the Republican leader of the Senate Banking Committee pitched the most significant overhaul of the Dodd-Frank Act since the legislation’s 2010 enactment. Democrats responded by calling the proposal a “Wall Street deregulation package” that amounts to an industry wish list.
Those who work for mega-banks and represent them say that this wish list has nothing they’d ask for, and could instead bring headaches.
“The very largest banks are the one group that got nothing in this bill,” said Francis Creighton, executive vice president for government affairs at the Financial Services Roundtable. He called the attempt to link the bill to Wall Street “farcical.”
A key proposal in Senator Richard Shelby’s legislation could free about two dozen mid-size lenders from the toughest and most costly burdens of Dodd-Frank, including requirements that they undergo annual stress tests and hold big capital cushions.
Read the full story at Bloomberg.