So I am watching Yellen getting grilled on Dodd Frank, and watching the arguments for it.
Senator Elizabeth Warren pointed out the United States banks have taken market share and attributed this growth and "record profits" by banks to regulation. She also attacked Trump and his cabinet about using "alternative facts".
Well I just wanted to point out a few things that other Senators brought up but will not likely see the headlines as well as my own opinion.
First, these regulations have caused a huge burden on community banks. In fact, they have been blacklisted and put out of business because they can not afford (without consequence) the regulations that the big banks handle. Because of this community banks have been closing and those customers are going to the big banks. This leads me to the most important point:
It was the big banks that caused the financial crisis. It wasn't the little guy. It was those "too big to fail". In bailing them out and applying these regulations to smaller banks that did not have a hand in the larger speculation-- we have created monopolies that choke out any bank start up. This leads me to an important axiom: we do not want too much power in the hands of too few. And unfortunately these regulations have rewarded those who caused the crisis by choking out their competition. To increase banking security you need more people making decisions to lending-- not less.
Keep that in mind as banking regulations hit the headlines