Bank rules: back to the Wild West days?
When the US banking system sneezes, the world doesn't simply catch a cold - it gets a near fatal fever
After the crisis, international banking regulators introduced stringent measures to protect banks and financial systems from stresses and shocks, such as the collapse of a bank and the ripple effects that would have on other banks. But with the administration of President Donald Trump adopting an anti-regulatory stance - which has resulted in the share prices of US banks rallying on the New York Stock Exchange - there is concern about the implications for the global financial system. Trump is showing no signs of backing down on the promises he made during his campaign, such as his pledge to overhaul the 2010 Dodd-Frank act which imposed tough restrictions on banks after the Wall Street meltdown. His administration's approach is also seen as hostile to the efforts of the Basel Committee on Banking Supervision to implement global standards. Dodd-Frank introduced extensive and transparent regulation of financial markets. It included measures to protect consumers from risky activities o...
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