Donald Trump Scaling Back Hussein-Obama’s Business Regulatory System
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US President Donald Trump orders a sweeping review of the Dodd-Frank Act rules enacted in response to the Y 2008 financial crisis, signing an executive action Friday designed to significantly scale back the overburdening business regulatory system put in place in Y 2010.
President Trump halted another of former President Barack Hussein-Obama’s regulations, disdained by the financial industry, that requires advisers on retirement accounts to work in the best interests of their clients.
President Trump’s order gives his administration time to review the change, known as the “fiduciary” rule.
Taken together, the actions are designed to lay out the Trump Administration’s approach to financial markets, with an emphasis on removing regulatory burdens and opening up investor options.
The orders are the most aggressive steps yet by President Trump to loosen regulations in the financial services industry.
Trump is scheduled to issue the directives at a signing ceremony around Noon following a meeting of more than 12 top corporate executives.
“Regulation has actually been horrible for big business, but it’s been worse for small business,” the President said. “Dodd-Frank is a disaster.”
Particular attention will be paid to the Volcker Rule limits on banks making speculative bets with their own funds, an restriction promoted by former Federal Reserve Chairman Paul Volcker.
President Trump’s directive stalls the fiduciary rule set to take effect in April.
The Trump Administration does not believe Dodd-Frank measures addressed real issues in the financial system, The President’s team also believes the US Labor Department fiduciary rule was unnecessarily restricting investor choice without providing necessary consumer protection.
President Trump calls for the Labor Department to stop and review the regulation in its entirety, signaled that he is expecting significant change.
Delaying implementation of the Labor Department rule is the 1st step Republicans and the finance industry say is part of a broader overhaul of the measure.
GOP Lawmakers have argued that the Securities and Exchange Commission (SEC), not the Labor Department, should oversee and regulate any changes related to financial firms.
Banks, asset managers and insurers have been fighting the fiduciary rule ever since the Labor Department approved it last year, saying the regulation could raise the costs of providing advice and make it harder to serve lower-income clients.
Business groups including the US Chamber of Commerce and American Council of Life Insurers have sued to block it.
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