US bank regulators endorse Trump deregulatory proposals

Bank regulators have endorsed several key recommendations of a Trump administration blueprint for loosening financial rules, increasing the chances of a reprieve for Wall Street that does not depend on action in Congress.

Two officials who have taken on top regulatory roles since President Donald Trump was elected told lawmakers they supported revamping the Volcker rule ban on banks gambling with their own money and reducing the burden of annual bank “stress tests”.

The comments from the Federal Reserve and the Office of the Comptroller of the Currency offered the clearest support yet for deregulatory proposals unveiled by the Treasury department last week, a response to Mr Trump’s call to dismantle the Dodd-Frank post-crisis reforms.

Congress is unlikely to pass wholesale changes to the 2010 Dodd-Frank act itself any time soon, but the regulator’s views matter because they have considerable scope to water down existing rules within the bounds of the existing law.

The remarks come in prepared testimony released ahead of a Senate hearing due to begin at 10am.