Fri, Feb 3, 2017
District Of Columbia
President Trump on today signed an executive order to look at scaling back the 2010 Dodd-Frank financial-overhaul law. The executive action is as part of a plan to dismantle much of the regulatory system put in place after the 2008 financial crisis.
The executive order directs the Treasury secretary and financial regulators to come up with a plan to revise rules the Dodd-Frank law put in place. White House National Economic Council Director Gary Cohn told the Wall St. Journal, “this is a table setter for a bunch of stuff that is coming,”
Cohn said existing regulations put in place by Dodd-Frank are so sweeping that it is too hard for banks to lend, and consumers’ choice of financial products is too limited. Democrats and consumer groups have pushed for tighter controls on banks and other lenders, particularly after the subprime mortgage crisis that helped fuel the global financial crisis.
Cohn also said that many of the post-crisis rules haven’t solved the problems they were supposed to be addressing. He said, for example, that there still isn’t a solid process to safely wind down the collapse of a giant faltering financial company or to ensure that those firms have access to short-term liquidity.
He also said that the White House wouldn’t need a change in the law to redirect the mission of the Consumer Financial Protection Bureau, created by the 2010 law and which governs things like mortgage and credit-card rules.
He suggested the White House could influence the mission of the bureau, set up as an independent agency, by putting a new person at its helm to replace Richard Cordray, the agency’s director. Cordray has declined to say what he might do if President Trump attempts to remove him.
Contact: Glen Cooney, 443.325.0775, firstname.lastname@example.org