1. By Ms. Parsons and Mr. Frasier
Banking Regulations
By Ms. Parsons and Mr. Frasier

2. America has struggled with finding the right balance between consumer protection and economic freedom in the banking industry.

3. The History of Banking Regulations in the US
US Bank, legislative charters
free banking laws
National Banking Act
Federal Reserve Act
Glass Steagall Act created FDIC
Deregulation of commercial banks
Looser restrictions on interstate banks
Removed restrictions on services
banks could offer
Dodd-Frank Wall Street Reform Act
Americans lost $19 trillion in personal wealth during the Great Recession
Americans lost $2 trillion in personal wealth during the Great Depression

4. THE DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT
CURRENT FISCAL POLICY
THE DODD-FRANK
WALL STREET REFORM AND
CONSUMER PROTECTION ACT
Financial Stability Oversight Council
Regulate banks “too big to fail”
Consumer Financial Protection Bureau
Restrict predatory lending
Volcker Rule - pending
Separate commercial from investment banking again

5. Financial Stability Oversight Council keeps banks offering goods and services for sale
Consumer Financial Protection Bureau keeps households spending on goods rather than debt
Volcker Rule would limit businesses (banks) from offering more services for more profit and engaging in risky investment

6. IMPACTS OF CURRENT FISCAL POLICY
POSITIVE
NEGATIVE
Stock Market gains with
less risky investment
Building Permits decline
as less people qualify
Housing Markets benefit
from better mortgages
Income and Wages
don’t become more equal
Retail Sales rise with
less bankruptcy
Corporate Profits decline
with regulations

7. Should Dodd-Frank be strengthened or weakened to help the US economy?

8. I believe more government oversight of the banking industry will help...

9. PROPOSED FISCAL POLICY
STRENGTHEN THE DODD-FRANK
WALL STREET REFORM AND
CONSUMER PROTECTION ACT
Enact CEO pay disclosure rules to discourage excessive salaries
Restrict incentives to sell banking products to protect consumers
Make financial institutions pay for “Gold Standard” certification

10. IMPACTS OF PROPOSED FISCAL POLICY
POSITIVE
NEGATIVE
Unemployment will
decrease if financial
institutions invest more in new businesses instead of CEOs
Inflation might increase if
banks cover costs with
increased fees
Income and Wages will become more evenly distributed as investments create growth
Stock Market gains
might slow if less risky investment options aren’t as available