Today, President Trump will sign two executive actions that will begin the work of overhauling banking regulations enacted after the 2008 economic meltdown. Regulations, like the 2010 Dodd-Frank Wall Street reform law, that the new administration has deemed as burdensome on financial services firms and consumers.
Per CNN, earlier this week, the president labeled Dodd-Frank a “disaster” and that he intended to “do a big number on it.”
The first order is intended to gather reform advice and input from those leading federal regulatory agencies. The second order will instruct the Department of Labor to hold on implementing the Obama administration’s controversial “Fiduciary Rule,” which requires retirement investment advisors to always act in the best interests of their clients, set to take effect this April.
In an interview with The Wall Street Journal, White House National Economic Council Director Gary Cohn stated:
“Americans are going to have better choices and Americans are going to have better products because we’re not going to burden the banks with literally hundreds of billions of dollars of regulatory costs every year. The banks are going to be able to price product more efficiently and more effectively to consumers.”
Also from WSJ, the assurance that consumer groups and Democrats will put a fight because they hold that these very regulations “are protecting average borrowers and investors from abusive practices, while making the financial system more resilient and bailouts less likely.”
Lastly, the publication points to a political pickle the new president might be putting himself in.
During his populist campaign, President Trump blamed the political establishment and Wall Street banks for hitting American homeowners hard during the housing crash that followed the financial meltdown and “vowed to break up both.” Yet, his administration is replete with members of Congress and Wall Street executives, including Mr. Cohh, who left his role as president of Goldman Sachs Group Inc. to join the new administration.
Check back on Monday for the latest on these two actions, plus the results of President Trump’s Friday meeting with business executives JPMorgan Chase, Blackstone, IBM, Tesla and General Motors.