Trump's Transition: The Risks of Bank Deregulation

The video discusses the state of financial institutions, focusing on Trump's campaign promises versus his actions, particularly regarding deregulation and the Glass-Steagall Act. It examines the lessons from the 2008 financial crisis, critiquing the Obama administration's regulatory approach. The discussion also covers potential future regulatory strategies, including higher capital requirements and the impact on small versus large banks.

What was a key aspect of Trump's campaign regarding Wall Street?

• Support for deregulation

• Merging financial institutions

• Breaking up big banks

• Increasing taxes on banks

What was one of the criticisms of the Dodd-Frank Act?

• It was overly complex

• It eliminated regulations

• It was too lenient

• It favored small banks

What was a proposed solution to address 'too big to fail' banks after the 2008 crisis?

• Increase interest rates

• Break them up

• Reduce capital requirements

• Eliminate all regulations

What is a potential challenge in reimposing Glass-Steagall?

• High cost of implementation

• Opposition from small banks

• Lack of political support

• Complexity of modern banks

What might higher capital requirements help mitigate?

• Increased bank profits

• Bank mergers

• Lower interest rates

• Reduced regulation risks

What distinction did Trump's campaign make regarding banks?

• Between domestic and international banks

• Between small regional and large money center banks

• Between public and private banks

• Between investment and commercial banks

What is a concern about reducing regulations on large banks?

• It might increase financial instability

• It could limit bank growth

• It could lead to higher taxes

• It would decrease bank profits