Washington, D.C.– The banking legislation that President Trump signed into law today will increase opportunities for entrepreneurs and small businesses, and help community banks, across the country, BPC President Jason Grumet said.
“This important achievement demonstrates that good faith bipartisan negotiation can overcome sharp differences and move the country forward,” he said.
“In 2008, Congress took bold action to confront the vulnerabilities revealed during the financial crisis. Nearly 10 years later, it is encouraging to see Congress focus on legislative improvements that will strengthen the opportunity for small business growth while maintaining the essential safeguards required in the Dodd-Frank Act.” Grumet said.
“Today’s legislation moves us away from the counterproductive debate about repealing Dodd-Frank versus keeping it sacrosanct, and appropriately shifts the focus to supporting the small businesses that are the engines of our economic future,” Grumet said.
The legislation incorporates a BPC proposal to raise the current “one size fits all” threshold for systemically important banks while increasing the Federal Reserve Board’s authority to impose extra prudential requirements on large banks that fall below the threshold and pose a risk to market stability. This new authority will allow the Board to focus resources on the set of institutions that present the greatest potential systemic risk.