How Big Banks Want Donald Trump to Change Regulation
- Author: Tracy Ferguson Feb 04, 2017,
Feb 04, 2017, 0:28
"We appreciate the administration's support for pro-growth policies so banks can go even further in helping communities and our economy thrive", said Rob Nichols, president of the American Bankers Association, in a statement.
Trump's action to review Dodd-Frank led to a strong day for financial stocks Friday as bankers across the country largely heralded the move as a step toward decreased regulatory burden. The question, as always when the Trump White House repeals laws or regulations, is what the administration intends to do instead.
Trump's Treasury secretary nominee, Steve Mnuchin, agrees with Yellen on the importance of some of Dodd-Frank's rules, but believes that changes should be made to help individuals and small businesses.
Many Dodd-Frank measures are unpopular with financiers, including the Volcker Rule, which stops firms from proprietary trading - the practice of speculatively trading their own funds for profit. The law - introduced by Obama in 2010 as a response to the 2008 financial crisis - was a sweeping revision of the financial sector, created to safeguard financial stability, improve transparency and put a stop to "too big to fail" institutions in the U.S. financial system.
On Friday, President Donald Trump is reported to sign two directives aimed at the finance industry.
They were boosted by hopes the President would also target a new law from President Obama's time in office aimed at ensuring retirement advisers and brokers act in their clients' best interests on United States accounts. Chris Dodd of CT and former Rep. Barney Frank of MA. "So we'll be talking about that in terms of the banking industry", Trump said. In particular, Cohn has said that nonbanks should not be designated as SIFIs. Consumers may be most familiar with this independent government agency the law created, which was designed to prevent financial institutions from offering predatory products and services that abuse consumers.
"We have the best, most highly capitalized banks in the world, and we should use that to our competitive advantage", he said.
But on Friday President Trump gave license to Wall Street's darkest urges, signing an executive order that would allow regulators to begin the deregulatory bonanza. That's not what Wall Street wants, but it is what hardworking Americans need to have a healthy economy with more opportunities so they can achieve financial independence. The deregulation "has nothing to do with Goldman Sachs", he said.
Earlier Friday, the Senate used an unusual pre-dawn vote to approve legislation, 52-47, killing a regulation that has required oil and gas companies to disclose payments to the USA or foreign governments for commercial development. "It's a net-net win for the overall financial market because these rules and regulations have meant a big increase in costs for major banks and brokerage firms". White House Economic Council Director has said previously, "We don't think nonbanks should be SIFIs".