The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Restoring American Financial Stability Act: Final act for US banking drama?

Doubts remain over whether the new US legislation properly addresses the structure of the financial system and its many non-bank participants.

The old maxim among regulators holds that the more the regulated whine about what you’re imposing on them, the better you’re doing.

In that case, the Obama administration must be doing a wonderful job on regulatory reform of the US financial system. Everyone, it seems, is critical of the Restoring American Financial Stability Act, which was passing through the Senate as Euromoney went to press.

Banks have been urging the administration to get on with this quickly because the very uncertainty over regulatory reform is beginning to harm them. But it took the dramatic announcement of the SEC’s fraud allegations against Goldman Sachs in April to silence political opposition to reform and bring bipartisan support in Congress.

It is a huge, 1,300-page bill. One wonders if more than a handful of people have read it all. Clearly there is something in it for everyone to object to. As well as imposing new rules on different markets, the bill aims to overhaul the entire structure of regulation and the bodies that enforce it.

The American Bankers Association moans that the new consumer protection agency the bill sets up puts too much burden on banks, which are heavily regulated already, rather than focusing on non-banks which, the association rather boldly claims, primarily caused the financial crisis.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree