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U.S. bank stocks poised to see increased profitability under possible changes to the Dodd-Frank Consumer Protection Act. In 2010, then-U.S. president Barack Obama signed the Dodd-Frank Act, which was aimed at providing enhanced regulation of U.S. banks in order to protect consumers. After the financial crisis, U.S. legislators felt that the banks had taken unnecessary financial risks and that taxpayers were being asked to pick up the bill for their mistakes. Among other things, Dodd-Frank’s Volcker Rule limits U.S. banks from proprietary trading, in which deposits are used for trading in the bank’s own accounts.
Since taking office, U.S. President Donald Trump has repeatedly expressed his belief that there is too much regulation of the financial-services industry and has promised to reduce it. Recently, he asked the U.S. Treasury Department to lead a review of financial-industry legislation... Read the full article here.