Trump Signs Exec Actions on Financial Regulations
President Donald Trump will begin work Feb 3 (today) dismantling the financial regulations enacted after the 2008 economic crisis.
Trump signs order to cut red tape for businesses
In his first order, Trump will issue a broad directive meant to garner input from the heads of federal regulatory agencies on areas for reform. The move won’t make any immediate changes to the agencies or their policies; rather, it will solicit recommendations for changes to the Dodd-Frank Wall Street reform law that was enacted in 2010.
What does that mean for RegTech? Is there opportunity in the market for technology company’s to take lead in the overhaul?
Trump on Monday called Dodd-Frank as “disaster” and vowed to “do a big number on it.”
Among the actions being considered are “personnel actions,” the White House official said. While he did not identify those actions, the most vulnerable financial regulator is Richard Cordray, the director of the Consumer Financial Protection Bureau. A federal appeals court ruled last year that the bureau’s structure was unconstitutional he exercises “massive, unchecked power” independent of the president. As a remedy, the court said, the president ought to be able to fire.
It could also include a dismantling of “orderly liquidation” authority for too-big-to-fail banks. Last week, the Justice Department’s Office of Legal Counsel released a 2010 legal opinion raising constitutional questions about the authority of bankruptcy courts to seize those banks, suggesting that the Trump administration was prepared to rely on the previously undisclosed legal advice.