Trump wants to free up stress test assets banks are require to hold as a result of 2008 reform.

[Yo_Mama_Been_Loggin]

If Donald Trump gets his way in overhauling banking regulation, it would free up some of the billions of dollars in capital that banks were forced to amass after the financial crisis. Less clear is what they’ll do with it.

After the administration released a highly anticipated 150-page report this week, Wall Street analysts spent two days churning out notes digesting its proposals. Researchers at Goldman Sachs Group calculated the five largest banks, excluding their own employer, have $96 billion in excess capital. Bank of America said the plan might unleash as much as $2 trillion in additional lending.

But is that how the money would be used? President Trump would like banks to plow their windfall back into the economy by making more loans to home buyers, small businesses or companies looking to expand. Some on Wall Street predict a lot will flow straight into the pockets of shareholders. One measure would ease annual stress tests, giving firms leeway to increase dividends, Credit Suisse Group AG analysts wrote in a May 24 note anticipating the proposals.

“These are shareholder-driven entities, first and foremost,” said David Hendler, the founder of New York-based researcher Viola Risk Advisors. “They will turn on a little more dividend or buy back stock, mostly.”

One problem is that qualified borrowers have ample access to financing and aren’t demanding more -- a slump that bank executives have bemoaned. And delinquencies on credit cards and auto loans already are rising. The loss rate on car loans made to people with good credit and packaged into bonds, for example, was the highest in the first quarter since 2008, S&P Global Ratings said in a recent report.

Some big U.S. banks have raised concerns in recent weeks that consumers may even have too much access to credit, increasing the risk that lenders will get burned.

https://www.msn.com/en-us/money/markets/if-trump-unlocks-dollar2-trillion-at-banks-heres-who-might-get-it/ar-BBCHwKJ?li=BBnbfcN&ocid=edgsp

[Else You Are Mad]

1. As Trump himself said...

He loves a financial crash so he can buy real estate on the cheap. I wouldn't be surprised if that's the reason why he wants to do so because this would increase the likelihood of a 2008 style crash.

[Wellstone ruled]

2. Interesting topic.

Lets see,last week Spain forced two Banks to merge because of Mortgage Bonds that were worthless. Germany's largest Bank is floating several Billions in Stock and Bonds to prop up their Balance sheets after being caught in a Money Laundry Scheme. BTW,same Bank that facilitated Russian Oligarch Money to Trump via Cyprus and Wilbur Ross.

If you had read who came to the White House last week during the Comey Hearings,you will see the real source of this story.