It is a myth that “deregulation” caused the housing bubble (and later, the crash) of 2008. And a bigger myth that post-recession laws have improved banking.
As John C. Goodman writes, almost everything said by government and pro-government economists about the 2008 recession is a myth. See here.
And the “cure” hatched by Congress in 2009–the Dodd-Frank law, which imposed thousands of pages of new regulations on the banking industry–has made things worse.
[After Dodd-Frank], Banks are holding more reserves; they are making fewer loans; there are more consolidations and fewer banks are forming; the industry is hiring a ton of regulatory compliance officers and very few new loan officers; and the recovery from the recession has been the slowest on record.
