U.S. bank regulation is not being rolled back to match pre-financial crisis standards despite Federal Reserve (Fed) chair Janet Yellen saying on Thursday that she agreed with some proposed amendments to legislation, says a sector analyst.
"We're not going back to what things looked like in 2007 and 2008, that's absolutely not going to be the case. But it is going to be slightly better," Chris Wheeler, U.S. banks analyst at Atlantic Equities, told CNBC's Squawk Box on Friday.
Yellen's comments followed her review of an initial paper from Treasury Secretary Steve Mnuchin regarding proposed changes to key regulatory items for banks such as the Volcker Rule (which lays down guidelines for speculative investing on the part of banks) and minimum leverage ratios.
The changes are not about returning to the days of proprietary trading, according to Wheeler, but rather more about reducing burdensome reporting requirements.
"By doing that, the banks are going to be able to hold bigger inventories and that's actually good for the market - which is part of the whole story here about obviously getting the banks to service the broader economy," affirmed the banking analyst.