Who murdered the community bank?

It wasn't Dodd-Frank...

How did the Dodd-Frank Act impact small banks?
(Image credit: Zoonar GmbH / Alamy Stock Photo)

Americans got some good news about the financial industry in the last week. Unfortunately, it quickly turned into a murder mystery.

The good news is that the U.S. financial system is considerably sturdier than it used to be. The Federal Reserve released the results from two different forms of stress tests it ran on the country's biggest banks, and found that all 33 banks had big enough cushions of shareholder money to survive a serious recession. The second batch of tests looked at the banks' internal procedures, risk management, and other questions of institutional design. The results for those tests were almost as good: Morgan Stanley was asked to resubmit a plan, and two U.S. subsidiaries of Deutsche Bank and Santander got negative results as well. But that was it.

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Jeff Spross

Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.