President Trump has bashed Dodd-Frank as a loan-killing “disaster” that’s crushing the economy.
Trump recently complained that “many friends of mine who have nice businesses” can’t get loans because of the regulations in Dodd-Frank. “The banks just won’t let them borrow,” the president said.
The White House argues this lack of business lending is precisely why the 2010 Wall Street reform law needs to be rolled back.
But a closer look at lending statistics suggests that this dramatic rhetoric about banks not lending doesn’t match up with reality.
In fact, banks are lending a ton to businesses these days. Commercial and industrial loans from commercial banks are an all-time high of $2.1 trillion last November, according to the Federal Reserve.
Business lending did take a hit during the 2008 Wall Street meltdown. However, lending bottomed out after the Great Recession ended and bank loans to businesses have nearly doubled from the low.
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