President Donald Trump signed a bill into law on Thursday that partially repeals the Dodd-Frank Wall Street Reform and Consumer Protection Act, a banking reform bill put in place in wake of the 2008 financial crisis.
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Banking analyst Dick Bove told FOX Business he favors the Trump administration’s efforts to roll back the regulations and believes they will boost regional and community banks.
The bill includes raising the threshold to $250 billion from $50 billion for banks deemed “too big to fail,” a measure Bove says will boost merger and acquisition activity and lower the cost of doing business.
While many experts, including Bove, believe Dodd-Frank to be a burden on the industry, since its passage in 2010 bank profits have soared, he noted.
“I am a Dodd-Frank card-carrying hater,” he told Maria Bartiromo on “Mornings with Maria.” “[But banking industry profits] have not been inhibited in any way by Dodd-Frank and the small banks that everybody said are being harmed by Dodd-Frank – they weren’t harmed.”
“What keeps banks earnings moving higher is that their cost of money is almost zero still and they are selling a lot of loans again,” he added.