Donald Trump at the 2024 Conservative Political Action Conference (CPAC) in National Harbor, Maryland on February 24, 2024 (Jonah Elkowitz/Shutterstock.com)
Sen. Bernie Sanders (I-Vermont), Sen. Elizabeth Warren (D-Massachusetts), Rep. Alexandria Ocasio-Cortez (D-New York), Rep. Pramila Jayapal (D-Washington) and others on the left have often said that one of the painful lessons of the Great Recession is that the United States needs more regulation of banks, not less. But according to Politico's Michael Stratford, the second Trump Administration is "gearing up to deliver a major win to Wall Street banks" by "easing rules imposed on megabanks in response to the 2008 financial crisis."
In an article published by Politico on May 31, Stratford reports, "Trump-appointed regulators are nearing completion of a proposal that would relax rules on how much of a capital cushion the nation's largest banks must have to absorb potential losses and remain solvent during periods of economic stress. The plan — being developed jointly by the Federal Reserve, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation — could be released in the coming months, according to two people familiar with the discussions who were granted anonymity to discuss plans that aren't yet public. The forthcoming proposal would represent the latest policy win for the banking industry, which has been closely scrutinized and regulated since the 2008 global financial meltdown."
Stratford adds, "The move would be the first major banking regulation that Trump-appointed regulators take up as they advance policies they say will lead to greater economic growth."
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The Politico reporter notes that under former President Joe Biden, "regulators" proposed "that large banks increase the size of their capital cushions" — a plan that was "detested by" the banking industry. And the Trump Administration's plans, according to Stratford, would be a major departure from Biden-era banking policies.
Politico's reporting is receiving a lot of discussion on X, formerly Twitter.
Financial writer Michael Zaccardi tweeted, "Deregulation on the way? Trump administration is said to move to ease capital rules for big banks."
X user and MAGA critic Stephen Herling commented, "What’s the worst that can happen? Asking for the people back in 2007."
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Another X user, Jarmo Laitinen, posted, "We all remember what happened last time they cut regulations."
X user Richard Brown wrote, "Don't protect your constituents. R.I.P. them off. Hey MAGA did you vote for this?"
Jayapal has been outspoken about the second Trump Administration and banking regulations.
The progressive congresswoman tweeted, "After the Great Recession — which cost millions of jobs and destroyed countless lives — our government put regulations in place to make sure it never happened again. Now, Trump is getting rid of those rules. What could possibly go wrong?"
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Read Michael Stratford's full article for Politico at this link.