Treasury Secretary Scott Bessent divulged in more detail, the current administration’s plan for helping the banks and opening up more loans for more Americans.
In a recent interview by Breitbart, Treasury Secretary Scott Bessent reviewed topics from “no tax on tips, no tax on overtime,” but the key for banks lies in their deregulation.
As seen in the past, more regulation leads to banks having to be more selective in handing out loans, maybe even too selective. Instead, Scott Bessent argues: “I study financial history and I can tell you that when you see the regulated banking system not able to make loans, then that is how Main Street atrophies…”
Bessent continued by saying: “The strength of the U.S. is the depth and breadth of our financial system. We are cutting off the depth so only the high-end borrowers [get loans]. There is a lot we can do with regulation in terms of bank supervision, the supervisors have a lot of discretion, there are rules being pressed on small and community banks in terms of asset diversification and geographical diversification.”
Coming Soon: More Loans For More Americans
The regulations that Bessent is likely referring to include but are not limited to the Dodd-Frank Wall Street Reform and Consumer Protection Act. See the Banker Report summary of the Dodd-Frank Act
Bessnet put it sensibly: “They don’t have geographical diversification. They might serve one small town with five branches. So there is a lot we can do with that.” Community banks are community banks because they serve a certain community, it’s in the name. In other words, they are not national banks so why regulate them the same and stifle growth?
It appears that the vision moving forward financially and economically for the US has not left out community banking, rather, the move has brought light to their value and place in the future of our country.
The Banker Report 
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