WASHINGTON (dpa-AFX) - In a signing ceremony for a bill rolling back regulations on small and medium-sized banks, President Donald Trump suggested Thursday he would also consider cutting regulations on larger financial institutions.
Trump claimed complex and costly regulations implemented following the 2008 financial crisis gave large banks an unfair competitive advantage at the expense of neighborhood banks.
'Since its passage in 2010, Dodd-Frank has dealt a huge blow to community banking,' Trump said as he prepared to sign Economic Growth, Regulatory Relief, and Consumer Protection Act.
He added, 'As a candidate, I pledged that we would rescue these community banks from the disaster of Dodd-Frank and now we are keeping that commitment.'
Trump claimed the bill is designed to help community banks and credit unions, but he also raised the possibility of rolling back regulations on the banks deemed 'too big to fail.'
'Maybe we're going to have to start looking at that also for the larger institutions because they also are put at a disadvantage in terms of loaning money to people wanting to open up businesses,' Trump said. 'So perhaps we'll be taking a look at that.'
The provisions of the bill Trump signed include an increase in the threshold at which banks are considered 'too big to fail' to $250 billion in assets from $50 billion in assets.
The bill also amends the Volcker Rule to exempt banks with under $10 billion in assets and smaller trading portfolios.
Supporters of legislation also claim it will improve access to credit and enhance consumer protections for veterans, homeowners, and student loan borrowers
Meanwhile, opponents of the bill claimed it potentially threatens the stability of the financial system and the economy.
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