The New Future of U.S. Banking and Financial Services Regulation

November 29, 2016

The presidential election has opened the possibility of significant changes to the Dodd-Frank Act regime that has been implemented over the last six years. It remains to be seen what plans the incoming administration will bring to this area. However, new regulatory proposals and other developments continue to present a complicated regulatory climate for banks and other large financial institutions.

This OnPoint discusses a number of potential regulatory restructuring proposals. The most far-reaching of these was recently offered by the Federal Reserve Bank of Minneapolis to address systemic risk by imposing a set of stringent capital requirements and other standards on large banking organizations (Plan). These standards are intended to dramatically reduce the risk of systemic instability in the banking sector, and to avoid encouraging the movement of financial risk to other sectors of the financial services business, through the imposition of a tax on the borrowings of certain “shadow banks.”

Read “The New Future of U.S. Banking and Financial Services Regulation.”