Feb 14, 2017

Yellen shoots down Trump claim that Dodd-Frank dampens lending

Dodd-Frank is not choking off lending, Fed Chair Janet Yellen told the Senate Banking Committee. That's counter to what Trump said about the law needing to be rolled back because "I have so many people, friends of mine, who have nice businesses who can't borrow money," due to the law.

At the behest of Elizabeth Warren, Yellen contradicted this impression, saying that " we have seen healthy growth in actual lending in the economy," since the passage of Dodd-Frank, and that overall lending has surpassed its 2008 peak.

Why this matters: the Trump administration wants to dismantle Dodd-Frank and likes to use how it's depressed useful financial activity, like lending, as a reason. That' why Trump brought it up recently. The claim doesn't hold water.

From earlier here's Yellen's opening statement: Janet Yellen bullish on the U.S. economy

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Situational awareness

Photo: Brett Carlsen/Getty Images

Catch up on today's biggest news:

  1. Mike Bloomberg offers to release women from 3 NDAs
  2. Wells Fargo to pay $3 billion to settle consumer abuse charges
  3. Bloomberg campaign says Tennessee vandalism "echoes language" from Bernie supporters
  4. Scoop: New White House personnel chief tells Cabinet liaisons to target Never Trumpers
  5. Nearly half of Republicans support pardoning Roger Stone

Wells Fargo agrees to pay $3 billion to settle consumer abuse charges

Clients use an ATM at a Wells Fargo Bank in Los Angeles, Calif. Photo: Ronen Tivony/SOPA Images/LightRocket via Getty Images

Wells Fargo agreed to a pay a combined $3 billion to the Justice Department and the Securities and Exchange Commission on Friday for opening millions of fake customer accounts between 2002 and 2016, the SEC said in a press release.

The big picture: The fine "is among the largest corporate penalties reached during the Trump administration," the Washington Post reports.

Bloomberg offers to release women from 3 nondisclosure agreements

Mike Bloomberg. Photo: Brett Carlsen/Getty Images

Mike Bloomberg said Friday his company will release women identified to have signed three nondisclosure agreements so they can publicly discuss their allegations against him if they wish.

Why it matters, via Axios' Margaret Talev: Bloomberg’s shift in policy toward NDAs comes as he tries to stanch his loss of female support after the Las Vegas debate. It is an effort to separate the total number of harassment and culture complaints at the large company from those directed at him personally. That could reframe the criticism against him, but also protect the company from legal fallout if all past NDAs were placed in jeopardy.