The recent confirmation hearing for Treasury Secretary nominee Steven Mnuchin as well as his written answers to questions after the hearing revealed much about his views and intentions for the banking industry if confirmed.
According to The Wall Street Journal, the prospective Treasury Secretary believes that size alone shouldn’t be the only factor when regulating banks — “complexity and activity” must also be considered. This answer came in response to a question about the $50 billion asset threshold at which point banks face tougher regulation under Dodd-Frank. This is not the only part of the law he’s interested in changing.
Mnuchin also believes in a “comprehensive review” of the powers and institutional processes of the U.S. Financial Stability Oversight Council — a group of senior regulators formed under Dodd-Frank.
When asked where he stood on a return to the Glass-Steagall law, which forces banks to split traditional lending from investment banking, he indicated the new administration needed more time to consider its position.