The currently regulatory scheme governing banking laws and investment instruments was the wrong response to the financial crisis of 2008, creating a confounding maze that few understand and even fewer can navigate. Hundreds of provisions of the 2010 massive banking overhaul, Dodd-Frank, have yet to be finalized, and even finalized portions have yet to be fully interpreted. The havoc on America’s financial institutions has become clear, with government regulators receiving unprecedented powers, the creation of an uneven playing field among lenders, and a credit squeeze on America’s consumers and businesses, leading to the slowest economic recovery on record.
CASE believes it’s time to fix the “glitch,” by keeping firm regulations on banks while getting government out of the banking business. It’s time to level the playing field, end deferential treatment to “too big to fail” institutions, and undo restrictions on banks that have achieved nothing other than to put a shark infested moat between consumers and access to credit. A market economy that rewards risk and investment requires clear and firm banking rules, not an army of government regulators squeezing the credit market with their arbitrary interventionist impulses.