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BumRushDaShow

(171,265 posts)
5. It wasn't just them
Fri Apr 28, 2023, 02:34 PM
Apr 2023

it was that whole "$50 - $250 billion" capitalization sector. They felt it was too "burdensome". There were attempts to "simplify it" without changing who needs to do them but that would not be enough for the whiners.

Some of the others -

Big Wall Street Banks See Chance to Weaken Post-Crisis Rule


By Emily Flitter, Kenneth P. Vogel and Alan Rappeport

March 4, 2018

(snip)

The Senate bill, sponsored by Mike Crapo, an Idaho Republican, would create a small exemption. As it is currently worded, it would most likely apply to just three banks, all of which take deposits primarily from large asset managers and other banks, rather than Main Street customers, and are known as custody banks.

The three custody banks — Bank of New York Mellon, State Street and Northern Trust — would, when calculating how much capital to hold on their balance sheets, be able to set aside deposits they received from other banks and immediately gave to the Federal Reserve or another central bank for safekeeping.

(snip)

The prospect of a lobbying fight is spooking smaller banks, which have been waiting years for a legislative vehicle that would relax restrictions on them, including requirements that they undergo regular stress tests. The bill’s success hinges on the support of Democrats who may balk at voting for legislation that is seen as helping the industry’s biggest players.

“It’s everyone’s right to lobby for whatever they want to lobby for, but this is a very careful, delicately balanced bill with very solid bipartisan support,” said Paul Merski, the top lobbyist for the Independent Community Bankers of America, a trade association that has pushed hard for the changes central to Mr. Crapo’s bill.

(snip)

https://www.nytimes.com/2018/03/04/business/wall-street-banks-dodd-frank.html


Those that were heavily into crypto started crumbling first (like Signature), although Signature wasn't even at the $50 billion threshold but other bigger banks took a hit with the FTX failure, and that triggered a chain reaction.

The Fed back then didn't want it to change but as you know, the "changes" are congressional and the GOP had a trifecta in 2017 - 2018 (after which Democrats took the House back again).

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