...so this whole deregulation thing is all set to improve bank lending and profitability but probably at the expense of increasing risk taking to the next level, exacerbating asset bubbles and eventually greater financial instability that breeds systemic risks within the financial system.
...if the administration has not realised, the US banking system is already sitting on a huge unrealised loss position, all waiting to implode. And yes, just remove those capital buffers that the banking system needs more, not less. In Australia, we would do the entire opposite to strengthen banks balance sheets.
