Despite the opportunity to repeal the Dodd-Frank financial laws that have plagued the banking industry since their passage, big banks are reluctant to support such a move. It turns out, big government is great for preventing new competition from emerging, and with barriers to entry so high, the big entrenched banks see more risk to their business from repealing Dodd-Frank than from keeping it. The Wall Street Journal writes:
J.P. Morgan’s Jamie Dimon and Lloyd Blankfein of Goldman Sachs have urged against repeal, and other bank CEOs are also suggesting policy small-ball rather than wholesale reform. Mr. Blankfein, who will have former colleagues as senior policy makers in the Trump Administration, in particular is in a position to encourage significant change.
But last year he explained why that’s not necessarily in Goldman’s interest. After describing how regulatory costs have helped raise the barriers to entry in his business “higher than at any other time in modern history,” Mr. Blankfein forecast more opportunities for global giants like Goldman to gain market share, as “only a handful of players” will likely be able “to effectively compete on a global basis.”