On May 31, Politico found that the Trump administration was in preparation to ease financial regulations established after the 2008 recession.
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.
Politico
The Federal Reserve, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation are involved in the planning of this reform that could be released “in the coming months.”
The supplementary leverage ratio (a requirement for banks to keep some capital based on the total size of their assets) is the main target of this deregulation. Treasury Secretary Scott Bessent told Roger Stone that he was aiming to either reduce or entirely remove the ratio in an effort to lower interest rates.
Despite Trump regularly claiming to represent and fight on the behalf of working class Americans during his past presidential bids, such a policy will only benefit large banks while maximizing the risk of a repeat of 2008, the brunt of which will be born by middle and working class Americans.
