G. William Beale noted in his Commentary column, "Big regulations stifle small banks," that small banks are being crushed by pointless red tape due to the 2010 Dodd-Frank financial "reform" law, a 2,300 page "leviathan."
The Dodd-Frank law decreases competition in other ways that may end up costing taxpayers billions. It exempts the government-sponsored mortgage giants Fannie Mae and Freddie Mac, which have been bailed by taxpayers out at an ever-increasing cost that now exceeds $170 billion, from its regulations and restrictions, like the "qualified residential mortgage" provision. That leaves them free to traffic in mortgages that better-managed private institutions cannot touch due to Dodd-Frank.
That makes no sense, since the private banks paid back their bailouts, while thinly-capitalized, mismanaged government-sponsored enterprises like Fannie Mae failed to do so and survive only due to continuing taxpayer subsidies. Effectively, they are gambling at taxpayer expense, shielded against competition by the Dodd-Frank law.