President Trump Dumps Dodd-Frank with Executive Order
Friday afternoon, US President Donald Trump signed an executive order and 2 memoranda on Friday relating to the Y 2010 Dodd-Frank law, which he described as “damaging … regulations that failed to hold Wall Street firms accountable,” the Washington Examiner reported.
The Dodd-Frank law, signed under former President Barack Hussein Obama, was passed in response to the financial crisis of Y’s 2007-2008. It brought major changes to financial regulations, affecting both financial regulatory agencies and nearly all parts of the US financial services industry.
“They have done, really, in many cases, the opposite of what they were supposed to,” President Trump said. “These regulations enshrined too-big-to-fail and encourage risky behavior.”
President Trump signed the memos at the US Treasury Department, but his administration has not released the overall strategy he envisions.
Our President indicated he wants broad changes, pledging to give the law a “Major Haircut.”
US Treasury Secretary Steven Mnuchin, when talking with reporters Friday, hinted at support for a replacement bill released this week by House Financial Services Committee Chairman Jeb Hensarling (R-TX), stating, “We are supportive of him bringing forward this legislation.”
Mr. Hensarling’s bill offers a more conservative approach to reforms. He issued a statement Friday in support of the documents President Trump signed.
“He pledged to dismantle Dodd-Frank, and his actions today are another significant step towards ending the Dodd-Frank mistake that has given Washington bureaucrats more power to politically control our economy,” Mr. Hensarling said.
The executive order Trump signed requires the US Treasury Department to identify and lessen burdens from tax regulations handed down in Y 2016. The memos call for an examination of 2 specific areas of the Dodd-Frank law, according to my sources.
Have a terrific weekend.