There is a move afoot in Congress to “overhaul” Dodd-Frank, at least to the point of adjusting the threshold size that banks would need to exceed in order to become subject to strict rules on “the capital, mergers, and other business” in which Government will permit these otherwise private enterprises to engage. Under the present threshold of $50 billion or more in assets, some 37 financial institutions are subject to such Government diktat.
The trick will be reaching a compromise on what should come next.
Republicans tend to favor either setting a threshold of between $250 billion and $500 billion, or basing the designation on a bank’s riskiness rather than on its size. That new range would leave around a dozen or as few as a half-dozen banks facing stricter regulation.
No, there must be no compromise. Strict elimination of Dodd-Frank should come next.
Worse, raising the threshold would, indeed, shrink the number of institutions subject to Government regulation. That, though, would make it easier for Government to expand to completion its control over these institutions.
That’s the stuff of corporate fascism: Government control over what a putatively private enterprise will be allowed to produce and how much of it that enterprise will be allowed. It’s dismaying that Republicans would propose such an affront to free enterprise and limited government.