I do not support this writer ideas, but the news is important. Regional banks will revert back to mostly 2007 rules. Recall that those banks and in fact the banks outside the too big to fail group did fine with few going bust. Our rules were really good enough then.
Our serious banking problem is that we must breakup the big ones as soon as possible and demand as much overseas for USA access. This is not a slight danger. What happened in 2008 is that the larger players converted their overseas placing power into dumping garbage assets they knew were garbage. Where they smaller they would have focused on competing with each other instead.
That role needs to be firmly in the hands of investment banking lacking the capital to self fund their own product. The banks need to be small enough that they are not tempted to sway turkeys either.
Just in Time Stimulus: Fed Proposes Looser Rules for Large U.S. Banks
While banks may appear healthier now, its illogical to be backward looking. It's only at the Minsky moment the risk is apparent and its too late. Right before that banks have taken on more risk and because the economy is doing well, with bad loans able to be rolled over that there doesn't seem to be a problem.
Get rid of the multiple mandates and we'll be in much better shape. The Fed will lose the incentive to play fast and loose with regulation because that won't be under their influence. Fed should have two jobs, be lender of last resort and maintain stable prices. Everything else causes problems.
The Fed should not be in charge of growing the economy. That's for the Executive and Legislative branches to do by promoting god policies.