United States

Bank regulatory revisions pose dangers and could lead to financial crisis: critics

Is the US condemned to repeat the past? While the economy remains the strongest it has been in years, concern is growing that recent revisions to the country’s banking regulations could bring an end to the current record-long bull market. Critics are warning that those regulatory changes — scheduled to take effect on Jan. 1, 2020 — will greatly increase the risk of US taxpayer bailouts by allowing banks to return to the kinds of risky and lucrative proprietary trading in which they had been engaged leading up to the financial crisis of 2007-2008. The regulations in question are housed under the Volcker Rule, which was made mandatory in 2015 as part of the 2010 Dodd-Frank Act. The rule, which imposed strict limits on speculative ...