WSFS, M&T to reap benefits from Dodd-Frank rollback bill

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WSFS headquarters
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Shares of WSFS Financial and M&T  remained in  record territory  Wednesday after the passage of a bill that rolls back some Dodd-Frank regulatory requirements.

Both banks are expected to have more financial breathing room and perhaps buy back stock or make other moves that would benefit shareholders. Both WSFS and M&T have been posting strong profits.

Shares of Wilmington-based WSFS stayed above $52 a share, near an all-time high. M&T shares were also in record territory, although the Buffalo-based banking and financial services giant that acquired Wilmington Trust in 2010 was down for the day.

The measure had the support of both of Delaware’s U.S. Senators and its lone congressional representative all of whom broke ranks with fellow Democrats.  All have taken heat from the progressive wing of the party.

The votes were expected, since Delaware’s financial services business is one of the state’s biggest industries.

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The requirements, among other things,   forced banks to bolster their reserves to cushion against any downturn and led to an expansion of compliance departments. The bill came after the near collapse of the financial system in 2008 and 2009.

Backers  of the bill said provisions of the bill led to smaller banks and credit unions merging with their larger rivals to avoid the strains of regulatory costs.

WSFS was able to acquire banks in Delaware and suburban Philadelphia when the regulations were in effect.

The measure stopped short of requiring the nation’s largest banks from the requirements.  That roster locally includes JPMorgan Chase, PNC, Bank of America and Wells Fargo.

The bill is expected to be signed by President Trump, who had called for the repeal of Dodd-Frank.

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