Rollback of US Dodd Frank banking regulations begin

As the 2008 US financial crisis becomes a distance memory, moves are
under way to remove banking regulations put in place following a $700
billion taxpayer bailout.

US President Trump has reversed part of the Dodd-Frank Act, providing
that provides regulatory relief to smaller banks.

But experts fear it's just the beginning of a bigger wave of deregulation.

Nick Harper reports from New York.

IN: "When..."
OUT: SOC
DUR: 2:42

AIR: http://www.fsnradionews.com/feeds/0607dodd-nh-air.mp3
ARN: http://www.fsnradionews.com/feeds/0607dodd-nh-arn.mp3
FM4: http://www.fsnradionews.com/feeds/0607dodd-nh-fm4.mp3
GENERIC: http://www.fsnradionews.com/feeds/0607dodd-nh-gen.mp3
ICRT: http://www.fsnradionews.com/feeds/0607dodd-nh-icrt.mp3
NIGERIA: http://www.fsnradionews.com/feeds/0607dodd-nh-von.mp3
938LIVE: http://www.fsnradionews.com/feeds/0607dodd-nh-938.mp3
RNZ: http://www.fsnradionews.com/feeds/0607dodd-nh-rnz.mp3
VATICAN: http://www.fsnradionews.com/feeds/0607dodd-nh-vat.mp3
ZIZ: http://www.fsnradionews.com/feeds/0607dodd-nh-ziz.mp3
SABC: http://www.fsnradionews.com/feeds/0607dodd-nh-sabc.mp3


TAKE VO
When President Obama signed Dodd-Frank into law he promised it would
change the way Wall Street does business, and prevent a repeat of the
2008 financial meltdown.

SOT - Super: Barack Obama, US President, speaking in 2010
"Because of this law the American people will never be asked to foot
the bill for Wall Street's mistakes."

TAKE VO
But the Dodd Frank Act was supposed to impose transparency and
financial accountability. Now the current occupant of the White House
has promised to "dismantle" even that. This bill represents what many
on Wall Street see as a first step in that direction.

SOT - Super: Donald Trump, US President
"The legislation I'm signing today rolls back the crippling Dodd-Frank
regulations that are crushing community banks and credit unions
nationwide, they were in such trouble."

TAKE VO
Dodd Frank was intended to make it less likely for big banks to fail.
It aimed to put a halt to riskier trading practices, and force
financial institutions to set aside a capital cushion should they run
into problems.

TAKE VO
This new bill does not amount to a complete rollback, but President
Trump has promised more deregulation. That worries some economists.

SOT - Super: Max Wolff, Chief Economist, Phoenix Group
"Historical cycles tell us that we're nearing the period of time where
we'll have another financial crisis, because it's been long enough to
forget. And these ease of repeal of this big financial rule is a good
sign that we've already begun the process of forgetting the lessons of
the last crisis."

TAKE VO
Then there's the Federal Reserve's decision to revise the Volcker Rule
- a post-crisis move to prevent banks from proprietary trading and
speculative investments - another sign of the prevailing mood against
regulation inWashington.

TAKE VO
Experts maintain that Dodd Frank, which requires regular bank 'stress
tests,' is crucial to the long term health of the industry. Professor
Lawrence J White teaches economics at NYU Stern.

SOT - Super: Lawrence J White, Economics Professor, NYU Stern
"They see the limitations as limitations rather than as needed
prudential restrictions. All of those things, terrifically important,
they need to be maintained. If anything, I would argue for
strengthening them not weakening them."

TAKE VO
The new bill signed by Trump means smaller banks now face fewer
regulations. Big banks are petitioning for the same.
TAKE VO
And President Trump argues Dodd Frank makes it harder for big banks to
give out loans. He wants to get the money moving. But others, with a
longer memory, fear that easing bank regulation at this stage could
bring the financial crisis full circle.

SOC