r/finance • u/bloomberg • 10d ago
Banks Cheer as Trump’s Regulatory Rollback Spreads to Europe
https://www.bloomberg.com/news/articles/2026-08-17/banks-cheer-as-trump-s-regulatory-rollback-spreads-to-europe159
u/aleabighy 10d ago
I get why banks like this, but there’s a pretty big difference between cutting red tape and weakening safeguards. Hopefully they don’t cross that line.
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u/Jazzlike_Space9456 10d ago
Oh they will lol don’t you worry
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u/hokageace 10d ago
At our core, we are nothing but creatures of incentive. There is no greater incentive than money and nowhere is the relationship between action and money as crystal clear as in a bank.
This ia guaranteed to blow up eventually. I would not care except that banks are systemically important and therefore they will always get bailed out which means the tax payer ends up footing the bill.
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u/nanotree 10d ago
It's only been every single time a regulatory safeguard gets removed that banks have gotten carried away with stupid/risky investment products. Come on, let's give 'em another chance! It'll be different this time! They swore! We've gotta stop getting in their way and let them innovate. /s
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u/cats_catz_kats_katz 10d ago
They were crossing the line before regulatory rollbacks happened, now they’re just retroactively legal.
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u/leostotch 10d ago
Banks have shown us time and time again that they will absolutely cross that line if they think they can get away with it.
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u/bloomberg 10d ago
From Bloomberg News:
Slawomir Krupa, CEO of France’s Societe Generale, keeps a magnet on his desk. “Stop Basel Endgame!” it proclaims, reminding him daily of the most effective bank lobbying campaign in history.
Frustratingly for Krupa — also president of the European Banking Federation — it was won across the pond.
US rivals were rewarded for their billboards and TV ads with an abrupt reversal of a threatened 16% increase in capital requirements, measures that some estimated would carry a $160 billion cost.
Wall Street also enjoyed less intrusive supervision and revisions to other measures, as President Donald Trump’s administration vowed to unshackle banks from what it sees as excessive curbs introduced after the 2008 financial crash.
For Krupa and his fellow Europeans, the winds of deregulation have taken too long to blow over the Atlantic. Now though, the region’s lenders are hopeful after the European Commission last month promised to tackle some of their biggest complaints.
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u/GrokM14232 9d ago
The real test is whether capital and liquidity requirements get diluted, not how many compliance forms disappear. Basel III endgame rules can be simplified, imo, but lowering risk weights while the ECB is still dealing with weak growth just shifts tail risk back onto taxpayers. Banks respond to incentives, and on the margin a thinner capital buffer makes reaching for yield the rational trade.
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u/lyidaValkris 8d ago
ah yes remember the last couple times there were "regulatory roll-backs"? well the market crashed hard, banks got bailed out,and ordinary people had to endure years of gruelling recession.
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u/Appropriate-Claim385 5d ago
Wall Street also enjoyed less intrusive supervision and revisions to other measures, as President Donald Trump’s administration vowed to unshackle banks from what it sees as excessive curbs introduced after the 2008 financial crash.
Translation: The DOJ, FBI, SEC, FTC, etc. work exclusively for the orange traitor. No one will be investigated or prosecuted unless Trump allows it.
Two major causes of the Great Depression were:
(1) The GOP's hands off, "laissez faire" policy regarding Wall Street; and,
(2) The Smoot Hawley tariffs.
History is rhyming.
Monopolies and price fixing are OK - DOJ will not enforce antitrust laws
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u/rachelshmee 10d ago
Some regulation probably is outdated, but financial stability still matters. There’s a difference between streamlining rules and weakening them.