CNN Money | By: Donna Borak | June 22, 2017 | 2:48 PM ET:
Seeking to provide some regulatory relief to community banks and other small financial institutions, bank regulators on Thursday asked Congress to consider several changes to the 2010 Dodd-Frank financial reform laws.
The regulators, which include the Federal Reserve and Federal Deposit Insurance Corp., mapped out how Congress and regulators could tailor regulations on smaller banks to help spur economic growth.
“In terms of reducing the regulatory burden, the biggest bang for the buck is to reduce the burden on smaller financial institutions,” said FDIC Chairman Martin Gruenberg during a Senate Banking Committee hearing.
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Top policymakers stressed proposed changes to the Dodd-Frank law should not undermine the strength of reforms born from the 2008 recession and aimed at preventing another financial crisis.
“I don’t think what we are talking about here amounts to deregulation,” said Federal Reserve Governor Jerome Powell, the central bank’s regulatory point man. “I think it amounts to making regulation more efficient while protecting the important gains we have made.”
Powell advised Congress to consider exempting smaller firms from the so-called Volcker Rule, which bans banks from taking risky bets with taxpayer money. He said the Fed supports increasing the $50 billion asset threshold set in the 2010 law so that the rule would only apply to the largest banks. He did not specify what the cutoff should be.
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