Trump Signs Order Backing Rollback Of Wall Street Reforms Meant To Prevent Another Banking Meltdown

February 3, 2017 Business, Dumpster Fires

So this just happened. Reuters reports:



U.S. President Donald Trump on Friday will scale back major regulations that resulted from the financial crisis, directing a review of the Dodd-Frank Act and putting the brakes on a retirement advice rule. The executive order Trump will sign on the 2010 Dodd-Frank law on Wall Street reform will be largely symbolic towards rolling back the regulations that Trump sees as hurting the economy, because only Congress can rewrite the legislation.

Even though the directives to agencies to examine possible changes to the landmark law may not have teeth, Wall Street embraced the possibility of simpler bank regulations by pushing stocks up in morning trade. “The first thing that we are going to attack is regulation, over-regulation. It’s not just in the financial markets, it’s in all markets,” said White House National Economic Council Director Gary Cohn on Fox Business Network. “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.”

Dodd-Frank, the biggest Wall Street regulatory overhaul in decades, set out a long list of rules intended to keep the financial system from a repeat of the 2007-09 crisis, including strict new capital standards on banks and tighter oversight of derivatives. It also created a new consumer protection watchdog to guard against predatory lending and called for annual stress tests for banks considered “too big to fail”.

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