What Financial Deregulation Could Mean for Banks

The video discusses a financial deregulation review, highlighting potential regulatory changes that could ease the burden on banks. It covers proposals like reducing rules on leveraged lending and easing the Volcker Rule. The discussion also touches on the potential for banks to free up capital, which could be used for lending or dividends. However, there are concerns about increasing risks in the financial system, such as subprime auto loans and rising consumer debt. The video questions whether easing regulations is wise given the current financial risks.

What is the significance of the $2 trillion figure mentioned in relation to banks' balance sheets?

In what ways could the proposed regulatory changes affect lending practices of banks?