Trump Moves to Roll Back Fi­nan­cial Reg­u­la­tion

US pres­i­dent to or­der re­view of Dodd-Frank, halt Obama fidu­ciary rule

The Economic Times - - Around The World -

US Pres­i­dent Don­ald Trump will or­der a sweep­ing re­view of the Dodd-Frank Act rules en­acted in re­sponse to the 2008 fi­nan­cial cri­sis, a White House of­fi­cial said, sign­ing an ex­ec­u­tive ac­tion on Fri­day de­sig ned to sig ni fi­cantly scale back the reg­u­la­tory sys­tem put in place in 2010.

Trump also will halt an­other of for­merPres­i­den­tBarack­Obama’sreg­u­la­tions, hated by the fi­nan­cial in­dus­try, that re­quires ad­vis­ers on re­tire­ment ac­counts to work in the best in­ter­ests of their clients. Trump’s or­der will give the new ad­min­is­tra­tion time to re­view the change, known as the fidu­ciary rule.

Taken to­gether, the ac­tions are de­signed to lay down the Trump ad min­ist rat ion’s ap­proach to fi­nan­cial mar­kets, with an em­pha­sis on re­mov­ing reg­u­la­tory bur­dens and open­ing up in­vestor op­tions, said the White House of­fi­cial, who briefed re­porters on con­di­tion of anonymity. The or­ders are the most ag­gres­sive steps yet by Trump to loosen reg­u­la­tions in the fi­nan­cial ser­vices in­dus­try and come after he has sought to stock his ad­min­is­tra­tion with vet­er­ans of the in­dus­try in key po­si­tions. His plans are sure to face fierce crit­i­cism by Democrats who charge that Trump is in­tent on un­do­ing changes de­signed to pro­tect every­thing from av­er­age in­vestors to the global bank­ing sys­tem.


Trump’s Trea­sury sec­re­tary nom­i­nee Steven Mnuchin will meet with mem­bers of the Fi­nan­cial Sta­bil­ity Over­sight Coun­cil and re­por t back on what changes the ad­min­is­tra­tion should take to al­ter Dod­dFrank, the of­fi­cial said. Par­tic­u­lar at­ten­tion will be paid to the Vol­cker Rule lim­its on banks mak­ing spec­u­la­tive bets with their own funds, an re­stric­tion pro­moted by for­mer Fed­eral Re­serve chair­man Paul Vol­cker.

Trump’s di rec­tive also stal ls the so-called fidu­ciary rule — set to take ef­fect in April — that the Obama ad­min­is­tra­tion said would pro­tect mil­lions of re­tirees from be­ing steered into in­ap­pro­pri­ate high-cost or high-risk in­vest­ments that gen­er­ate big­ger profits for bro­kers.

The re­view will in­clude ex­am­in­ing mak­ing per­son­nel changes at fi­nan­cial reg­u­la­tors as a way of ac­com­plish­ing the ad­min­is­tra­tion’s ob­jec­tives, the of­fi­cial said.

The carv­ing of ‘Don­ald Trump’ at the South­well Min­ster church in Eng­land is 700 years old. The 14th-cen­tury head is one of 280 at the Min­ster, and is lo­cated at the pul­pi­tum, a screen which sep­a­rates the nave from the choir. It is thought to be made of stone, with some plas­ter ren­o­va­tions which took place in the 19th cen­tury. Trump’s carv­ing was snapped way be­fore he be­came pres­i­dent but has re­cently caused quite a stir on so­cial me­dia, The Sun re­ported.

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