By Ms. Parsons and Mr. Frasier Banking Regulations By Ms. Parsons and Mr. Frasier

America has struggled with finding the right balance between consumer protection and economic freedom in the banking industry.

The History of Banking Regulations in the US 1800 - US Bank, legislative charters 1830 - free banking laws 1863 - National Banking Act 1913 - Federal Reserve Act 1933 - Glass Steagall Act created FDIC 1980 - Deregulation of commercial banks 1994 - Looser restrictions on interstate banks 1999 - Removed restrictions on services banks could offer 2010 - Dodd-Frank Wall Street Reform Act Americans lost $19 trillion in personal wealth during the Great Recession Americans lost $2 trillion in personal wealth during the Great Depression

THE DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT CURRENT FISCAL POLICY THE DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT Financial Stability Oversight Council Regulate banks “too big to fail” Consumer Financial Protection Bureau Restrict predatory lending Volcker Rule - pending Separate commercial from investment banking again

Financial Stability Oversight Council keeps banks offering goods and services for sale Consumer Financial Protection Bureau keeps households spending on goods rather than debt Volcker Rule would limit businesses (banks) from offering more services for more profit and engaging in risky investment

IMPACTS OF CURRENT FISCAL POLICY POSITIVE NEGATIVE Stock Market gains with less risky investment Building Permits decline as less people qualify Housing Markets benefit from better mortgages Income and Wages don’t become more equal Retail Sales rise with less bankruptcy Corporate Profits decline with regulations

Should Dodd-Frank be strengthened or weakened to help the US economy?

I believe more government oversight of the banking industry will help...

PROPOSED FISCAL POLICY STRENGTHEN THE DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT Enact CEO pay disclosure rules to discourage excessive salaries Restrict incentives to sell banking products to protect consumers Make financial institutions pay for “Gold Standard” certification

IMPACTS OF PROPOSED FISCAL POLICY POSITIVE NEGATIVE Unemployment will decrease if financial institutions invest more in new businesses instead of CEOs Inflation might increase if banks cover costs with increased fees Income and Wages will become more evenly distributed as investments create growth Stock Market gains might slow if less risky investment options aren’t as available