January 24, 2017

SIZE MATTERS NOT: Donald Trump’s nominee for Treasury Secretary says banks should not be overseen based on size alone.

Treasury Secretary nominee Steven Mnuchin said banks should be regulated based on their “complexity and activity, not simply size” and addressed other regulatory issues in written answers submitted to members of the Senate Finance Committee after his confirmation hearing last week.

“I believe in a regulatory framework that is determined by complexity and activity, not simply size,” he wrote, addressing a question about the $50 billion asset threshold at which banks face tougher regulation under the 2010 Dodd-Frank financial overhaul law. Many lawmakers and regulators want to change the line.

Mnuchin’s proposal seems more sensible than just moving the “too big to fail” line up or down.

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