New Trump orders target Obama-era financial regulations
- Author: Wendy Palmer Feb 04, 2017,
Feb 04, 2017, 0:51
Pledges to scrap regulation that stifles businesses, to boost the USA economy, were a focus of Mr Trump's election campaign. "So today you're going to start seeing the beginning of some of our executive actions to roll back regulation in the financial services market". That could weaken, for example, "certain powers [permitted by Dodd-Frank], like designating a non-bank firm to follow bank regulations because it poses a risk".
Conservatives opposed to the legislation argue that it doesn't fully address what caused the financial crisis - which they say was the USA government's housing policies.
The impact of the directives remains to be seen.
He argues that Dodd-Frank has cost the financial sector hundreds of billions of dollars and is a barrier to lending and job creation. President Trump himself: The review of Dodd-Frank is widely expected to le which could benefit real estate developers by driving up property prices. Republicans have always been opposed to the law.
Opponents of the law's sweeping regulations argue that Dodd-Frank has made it more hard for small business owners to get loans. Also, the House Financial Services Committee is working on a complete Dodd-Frank revamp.
Treasury secretary nominee Steven Mnuchin has said he thinks the CFPB is worth keeping, but suggested it should be funded by Congress, not the Federal Reserve. A federal appeals court ruled a year ago that the bureau's structure was unconstitutional he exercises "massive, unchecked power" independent of the president.
Dodd-Frank "is not doing what it set out to do", White House spokesman Sean Spicer told reporters on Friday.
In a rule aimed at preventing a repeat of crisis-era bank bailouts, Dodd-Frank calls for the nation's largest banks to write "living wills" - essentially plans that show regulators how their operations would be wound down, run and sold off if they fail in another downturn. His executive order is also expected to delay the implementation of a more recent rule that requires financial advisors to act in the best interest of their clients when giving retirement advise. A "suitability" standard simply requires an adviser meet a client's need and objective.
According to the official, the rule would be reviewed by the Labor Secretary and Department of Labor over 90 days, who will decide if it is necessary to implement the measure at all.
The move drew mixed reactions from securities industry players in St. Louis.
"President Trump's order is consistent with our vision in Congress to end the "Washington-knows-best" mentality, as we move forward with the Financial CHOICE Act to kick-start our economy and provide hardworking Americans with clear opportunities for a successful future", Wagner says. "The way these things are set up really matters, they're really sticky".