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Thursday, October 22, 2015

Killing Off Community Banks: Intended Consequence of Dodd-Frank?

http://www.counterpunch.org/2015/10/22/killing-off-community-banks-intended-consequence-of-dodd-frank/

Today there are 1,524 fewer banks with assets under $1 billion than there were in June 2010, before the Dodd-Frank regulations were signed into law... [Per Rep. Jeb Hensarling,] The Dodd-Frank architecture, first of all, has made us less financially stable. Since the passage of Dodd-Frank, the big banks are bigger and the small banks are fewer. But because Washington can control a handful of big established firms much easier than many small and zealous competitors, this is likely an intended consequence of the Act. Dodd-Frank concentrates greater assets in fewer institutions. It codifies into law `Too Big to Fail'

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