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Federal Reserve approves rules to loosen bank restrictions

WASHINGTON (AP) — The Federal Reserve has approved a package of rules that will ease restrictions imposed on banks following the 2008 financial crisis, giving a victory to the banking industry and President Donald Trump, a vocal critic of the more stringent rules.

The Fed’s rule changes approved Thursday will implement legislation passed by Congress in May 2018 to loosen restrictions, especially on smaller community banks, that had been imposed by the Dodd-Frank Act passed in 2010.

Trump made Dodd-Frank a frequent target of his attacks on government over-regulation which he charged had hurt economic growth by making it harder for banks to lend.

The Fed’s changes will loosen rules in the area of capital and liquidity standards and also on the living wills big banks must develop in case they fail.

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