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Banks dreaded the Dodd-Frank act, and rightly so, imposing strict regulations to basically make these financial institutions shrink on their own. The latest bank earnings show that Dodd-Frank did just that, but it also caused these big banks to actually lend more and maintain the necessary capital to absorb loan losses. So although it's clear now that banks are not too big to fail, these institutions are proving they are resilient and can in fact provide value where the customer needs it.
The thinking behind some of the rules within Dodd-Frank was that if you imposed strict regulations on the biggest banks and raise their cost of doing business, then the banks would shrink on their own. No need to go in and force them to break up. For a while, it seemed like that line of thinking was flawed. Now it seems to be coming to fruition. JPMorgan JPM 0.61% in its earnings release said that assets, after pretty much going straight up since the financial crisis, have dropped in the past six months by $160 billion, or 6%. Assets at Bank of America BAC -0.74% were flat from the quarter before. But BofA seems to be doubling down on its cost cutting efforts, particularly within its investment bank
http://fortune.com/2015/10/14/bank-earnings-dodd-frank-democratic-debate/
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