Repeal and replace Dodd-Frank, but be wary of Wall Street

As Republicans in Congress and the White House begin repealing and replacing the 2010 Dodd-Frank financial regulation bill, they need to remember something most of new media misses, which is that Wall Street’s big banks aren’t reliable friends of free-market conservatives in this effort.

The House Financial Services Committee is set on Tuesday to mark up its repeal and replace bill, the Financial CHOICE Act. This has Wall Street worried.

“We’re not for wholesale throwing out Dodd-Frank,” JP Morgan CEO Jamie Dimon said at a bankers conference right after the election. Goldman Sachs CEO Lloyd Blankfein saidaround the same time, “I wouldn’t want regulation to be repealed in total.”

Dodd-Frank, like most big-government regulations, irritates big businesses but also protects them from competition. Big, complex regulations impose costs that the big guys can afford, but the small fry can’t.

Making it expensive and difficult to start and build a bank is very helpful to banks that are already big and established….

Source: Repeal and replace Dodd-Frank, but be wary of Wall Street

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