U.S. President Donald Trump signed into law Thursday a measure that eases rules imposed on banks in the aftermath of the 2008 financial crisis and the Great Recession.
The law relaxes regulations and oversight on banks with assets below $250 billion, leaving a handful of the largest U.S. banks that must still comply with the stringent rules and oversight.
Trump said at the signing ceremony the rules and oversight, enacted by the 2010 Dodd-Frank financial reform law, were "crushing small banks." Trump lauded the signing as a victory in his administration's efforts to eliminate regulations to promote economic growth.
Although Trump signed the bill into law, much of Dodd-Frank remains intact. Trump signed the Republican-led measure that was passed by Congress after receiving the support of some Democrats.
Dodd-Frank was signed into law by President Barack Obama in response to a crisis that resulted in the loss of 8 million jobs, 2.5 million home foreclosures and the shuttering of 2.5 million businesses, according to Northwestern University's Institute for Policy Research.
A federal report prepared by the Financial Crisis Inquiry Commission concluded economic weaknesses that created the potential for the crisis were "years in the making." But the report said "it was the collapse of the housing bubble — fueled by low interest rates, easy and available credit, scant regulation and toxic mortgages — that was the spark that ignited a string of events, which led to the full-blown crisis in the fall of 2008."