How the changes would make it easier on banks

The Trump administration has released its most detailed report yet on its plans to deregulate Wall Street.

The report, containing recommendations by the Treasury Department, calls for rolling back many provisions of the Dodd- Frank Act, which was passed in 2010 in the wake of the financial crisis.

Many of the report’s recommendations were similar to the proposals in the Financial CHOICE Act, a bill passed last week in the GOP- controlled House of Representatives.

Here are some of the key recommendations: Weaker watchdog. The Consumer Financial Protection Bureau, created by Dodd-Frank, has handled more than 1 million complaints since its inception in 2011 and says its actions have resulted in about $ 12 billion in relief for consumers.

The report calls for limiting the bureau’s independence by authorizing the president to fire the bureau director at will. The director can now be fired only for cause. The director can now independently run the agency and be aggressive in cracking down on scammers without worrying about political outcomes. The bureau would also be funded through congressional appropriations, rather than the Federal Reserve, which is independent. u Relaxing financial standards. Banks with assets of $ 50 billion or more are held to higher capital standards, including how they manage risk and maintain capital.

The report recommends tailoring these standards based on how risky banks’ actions are. But strict standards are considered important by Dodd- Frank proponents because they ensure that banks have enough capital to run and lend during a recession. Banks also are required to undergo a yearly “stress test” to determine their soundness. The Treasury Department recommends narrowing the number of banks that undergo the test. u Revising rules for small banks. The report recommends relaxing mortgage lending rules for banks with total assets less than $ 10 billion. Among the prohibited items: “interest- only” periods, “balloon payments” required at the end of the loan period, and excessive upfront points and fees.

Banking lobbyists say relaxing these rules would spur more lending. The rules’ proponents say the recommendation could encourage riskier practices.