Why Goldman Sachs likes Dodd-Frank

Bankers aren’t thrilled about everything in Dodd-Frank (though hedge-funds tend to like the rules that will profit them by constraining competition). But on the whole, as with most regulation, the big guys ultimately stand to benefit. …

For one, regulation crowds out smaller guys. Michael Hirsch at Newsweek quoted a Treasury official saying:

“…we’ve consolidated the position of the five banks that were most central to the crisis,” the former Treasury official says—in other words: J.P. Morgan, Goldman Sachs, Bank of America, Morgan Stanley, Citigroup, along with, currently, Wells Fargo. “In my mind,” he says, “they’ve created six new GSEs,” or government-sponsored entities like Fannie Mae and Freddie Mac.”