President Trump pushed forward a series of directives to roll back financial regulations on Friday, after extolling financial leaders in a White House meeting. President Trump signed two executive actions today to scale back the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act that was instituted in response to the 2008 financial crisis.
Trump’s rationale: “They cannot borrow money. They just can’t get any money because the banks just won’t let them borrow it because of the rules and regulations in Dodd-Frank.”
Trump’s actions possess immense benefits for Wall Street, particularly investment advisors. However, there are many who do not support his actions, including Sen. Elizabeth Warren (D., Mass.). Warren stated that Trump’s action to scale back Dodd-Frank “will put two former Goldman Sachs executives in charge of gutting the rules that will protect you from financial fraud and another economic meltdown,” directly referring to Gary Cohn and Steven Mnuchin, both former Goldman bankers.
President Trump could fire and replace the head of the Consumer Financial Protection Bureau, which is responsible for the enforcement of rules for credit cards, auto loans, mortgages, and other loan products. Trump still has the power to post a vice chairman in the Federal Reserve, a key action that could set his monetary policy plans into action.