On Wall Street, the Dodd-Frank banking rules are about as popular as Alec Baldwin at a Donald Trump rally. But when we asked Morgan Stanley CEO James P. Gorman how he would revamp financial regulations, he surprised us.
“I would not opt for a complete redo or a repeal of Dodd-Frank,” says Gorman. The “basic architecture has served everybody’s interest well.”
Indeed, the results of last month’s Comprehensive Capital Analysis and Review evaluation, an annual bank health checkup conducted by the Federal Reserve, suggest that the financial industry is on firm footing. The Fed said it had no objections to the capital plans proposed by any of the 34 bank holding companies that took the exam—evidence of the banks’ much-improved health.