Trumponomics Trump’s Financial Reforms: Needed Correction or Ticking Time Bomb?
Jul 16, 2025
Christine Harper, a member of Bloomberg's editorial board and co-author of Paul Volcker's memoir, joins Katanga Johnson, Bloomberg's lead reporter on banking regulation, to discuss Trump's financial reforms. They delve into the tension between deregulation and potential crisis, exploring contrasting perspectives from Wall Street and crypto advocates. The conversation highlights the implications of easing capital rules, the regulatory shift towards cryptocurrencies, and the urgent need for oversight. These decisions could reshape the financial landscape drastically.
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Trump's Banking Deregulation Focus
- Trump's administration prioritized easing regulations to help small banks compete with bigger banks.
- They targeted reducing rules considered overly burdensome or irrelevant to banks' core balance sheets.
Capital Rule Changes Advance Fast
- The Trump administration has moved quickly to reduce banking capital requirements, especially the supplemental leverage ratio.
- They achieved this partly due to key personnel changes at the Federal Reserve that paved the way for deregulation.
Concerns About Deregulation Pace
- Financial deregulation is accelerating with industry advocates placed in key regulatory posts.
- This rollback risks weakening bank resilience and oversight of shadow banking and consumer protections.