Donald Trump plans to undo Dodd-Frank law

[Locutus]

President Donald Trump on Friday plans to sign an executive action to scale back the 2010 Dodd-Frank financial-overhaul law, in a sweeping plan to dismantle much of the regulatory system put in place after the financial crisis.

Trump also plans another executive action aimed at rolling back a controversial regulation scheduled to take effect in April that critics have said would upend the retirement-account advisory business.

“Americans are going to have better choices and Americans are going to have better products because we’re not going to burden the banks with literally hundreds of billions of dollars of regulatory costs every year,” White House National Economic Council Director Gary Cohn said in an interview with The Wall Street Journal. “The banks are going to be able to price product more efficiently and more effectively to consumers.”

Trump will use a memorandum to ask the labor secretary to consider rescinding a rule set to go into effect in April that orders retirement advisers, overseeing about $3 trillion in assets, to act in the best interest of their clients, Cohn said in the White House interview. He said the rule limits consumer choice.


mo


Donald Trump plans to undo Dodd-Frank law, fiduciary rule | Fox News

 

[Cannuck]

Good for Trump. The only thing financial regulations did was save the Canadian economy when the US crash occured. I've got ducks in a row this time so I can invest heavily in US property when the inevitable crash occurs.

 

[eh1eh]

What a c@nt. The crash almost cost me my business.
Still haven't really bounced back fully.
Ya, this guy is really looking out for the common man.
Well the common millionaire and billionaire at least.

 

[tay]

On Friday, Donald Trump signed an executive order intended to roll back Dodd-Frank, the sprawling regulatory framework President Obama signed into law in 2010 to avoid another financial crisis, which was not entirely beloved on Wall Street. He also scrapped a fiduciary rule intended to protect retirees by forcing brokers and advisers to “work in the best interest of their clients.“ (This, too, was controversial.)

“Donald Trump talked a big game about Wall Street during his campaign—but as president, we're finding out whose side he's really on,” the Massachusetts senator said in a statement. “Today, after literally standing alongside big bank and hedge fund C.E.O.s, he announced two orders—one that will make it easier for investment advisers to cheat you out of your retirement savings, and another that will put two former Goldman Sachs executives in charge of gutting the rules that protect you from financial fraud and another economic meltdown.”

Trump Says He Cut Wall Street Reform Because His


One of the revelations that came out in the wake of the financial crisis is that financial firms were dumping on their customers investments they knew to be bad. Among the many changes in the Dodd-Frank law is a “fiduciary rule,” requiring firms to provide investment advice that is in the best interest of their customers.

Donald Trump has filled his administration with Wall Street veterans, who believe that their industry is overregulated. (Financial firms accounted for 30 percent of all corporate profits before the economic crisis, but only 17 percent now, thanks largely to Dodd-Frank’s tighter regulation.) “Americans are going to have better choices and Americans are going to have better products because we’re not going to burden the banks with literally hundreds of billions of dollars of regulatory costs every year,” National Economic Council Director and Goldman Sachs veteran Gary Cohn tells The Wall Street Journal.

Cohn is planning to weaken the fiduciary rule, which he believes robs Americans of their freedom to hire financial advisers who might want to rip them off. “This is like putting only healthy food on the menu,” he tells the Journal, “because unhealthy food tastes good but you still shouldn’t eat it because you might die younger.”

Cohn’s metaphor is worth exploring. Healthy food, in Cohn’s example, is equivalent of investment advice that’s good for the client. Unhealthy food is like investment advice that’s bad for the client (but good for the adviser he has hired). Why shouldn’t people choose how much healthy versus unhealthy financial advice to hire? Well, the reason financial advisers are required to follow their clients’ fiduciary interests, rather than assuming that the logic of the free market will naturally produce optimal scrupulousness, is that investing is extremely complex.

There is a huge asymmetry of information between professionals who work at investment firms and their customers. A customer at a restaurant might be able to eyeball the menu and guess that the spinach salad is healthier than the pizza, but a customer shopping for financial advisers is not going to know which ones will give them the best financial advice versus the ones who might might be trying to enrich themselves at the customer’s expense.

Cohn promises his plans to gut the fiduciary rule are just the beginning of Trump’s offensive against Dodd-Frank. “This is a table setter for a bunch of stuff that is coming,” he promises the Journal. The items he’s setting out on that table will probably be healthier for Goldman Sachs than for the country.

Trump Announces Plan to Let Wall Street Scam America Again

 

[Curious Cdn]

President Donald Trump on Friday plans to sign an executive action to scale back the 2010 Dodd-Frank financial-overhaul law, in a sweeping plan to dismantle much of the regulatory system put in place after the financial crisis.

Trump also plans another executive action aimed at rolling back a controversial regulation scheduled to take effect in April that critics have said would upend the retirement-account advisory business.

“Americans are going to have better choices and Americans are going to have better products because we’re not going to burden the banks with literally hundreds of billions of dollars of regulatory costs every year,” White House National Economic Council Director Gary Cohn said in an interview with The Wall Street Journal. “The banks are going to be able to price product more efficiently and more effectively to consumers.”

Trump will use a memorandum to ask the labor secretary to consider rescinding a rule set to go into effect in April that orders retirement advisers, overseeing about $3 trillion in assets, to act in the best interest of their clients, Cohn said in the White House interview. He said the rule limits consumer choice.


mo


Donald Trump plans to undo Dodd-Frank law, fiduciary rule | Fox News

Trump's Goldman Sachs buddies are busily "draining the swamp". What to voters didn't realize is that the "swamp" that is being drained is the one that put constraints on people like Trump's Goldman Sachs buddies. That part went over the heads of the electorate.

 

[Ludlow]

Trump reminds me of the ex governer of Arizona , Evan Mecham.. He rescinded the order for a Martin Luther King Day. That was the year that the Super Bowl was taken away from Arizona. It wasn't long after those events that Evan Mecham was impeached.

 

[Remington1]

It's wasn't a disaster, it was a necessity that instead of being scaled back, should be reinforced.

 

[uncharted]

LOL!

Here we go again! Swamp is going to overflow.

 

[Corduroy]

"... we expect to be cutting a lot out of Dodd-Frank, because, frankly, I have so many people, friends of mine that have nice businesses that can’t borrow money, they just can’t get any money because the banks just won’t let them borrow because of the rules and regulations in Dodd-Frank."

 

[Highball]

If you read the content of Dodd-Frank carefully you will find it was made in a different era when there was financial crisis spinning out of control and a potential for an economic collapse. Almost 10 years have passed and we are now in need of a different system of controlling questionable loans and loan sharking the banks had been practicing.

 

[tay]

We recently marked the seventh anniversary of the Dodd-Frank Wall Street Reform and Consumer Protection Act, President Obama’s response to the 2008 financial crisis. President Trump and the Republicans are hard at work trying to undermine it, but there is one interesting element they’re having trouble weakening: credit-card reform. It’s a small part of the act, but an important one to understand, because it can serve as a model for fixing some of the more abusive parts of our economy.

When businesses choose to accept credit and debit cards, they must pay an “interchange fee” to the credit-card companies. This is a big cost for them. For a long time, credit-card companies, which are near monopolies, forced businesses to accept their terms: high rates, no minimums allowed, no discounts for people paying in cash, and more. This particularly affected poor people because they pay in cash and had to shell out more to cover the higher prices caused by card use.

Dodd-Frank changed all this. It said that interchange fees must be “reasonable and proportional” to the costs incurred for the cards. (The Fed interpreted this to mean that the fee must be, at maximum, “21 cents plus 0.05 percent multiplied by the value of the transaction, plus a 1-cent fraud-prevention adjustment, if eligible.”) It also opened up the network for competition and allowed merchants and businesses to set minimums and offer discounts for using cash. In other words, the government intervened directly and told monopolistic credit-card companies what rates they could set and what rules they would play by.

How simple and straightforward is that? This immediately solved several problems at once. It moved power from the too-powerful financial sector to the real economy of sellers and buyers. Local small businesses now have more control over the terms under which they’ll accept payments, rather than having those terms forced on them by faraway credit conglomerates. And it also simplifies regulatory enforcement.

The legal historian William Novak notes that the notion of public utility was essential to the nation’s first wave of reforms, from the Gilded Age to the New Deal. An 1877 Supreme Court case, Munn v. Illinois, determined that the government could regulate businesses “affected with a public interest,” including the railroads, telephone and telegraph companies, utilities, and banking. Years later, during the New Deal, Justice Felix Frankfurter noted that the existence of a public interest “made possible, within a selected field, a degree of experimentation in governmental direction of economic activity of vast import and beyond any historical parallel.”

more

https://www.thenation.com/article/t...-us-how-the-economy-could-work-for-everybody/

 

[Highball]

That was a farce to begin with. A Homosexual Senator and a Liar in Chief Senator teams up to help the banks and as usual the rest of the working class Americans got quietly screwed.

 

[Walter]

Dodd-Frank has been an abysmal failure and needs to go.

 

[B00Mer]

Dodd-Frank has been an abysmal failure and needs to go.

Same words your parents used before they kicked you out of the house.. :lol:

Walter has been an abysmal failure and needs to go...

 

[Bar Sinister]

Dodd-Frank has been an abysmal failure and needs to go.

Stated with your usual certainty and complete lack of evidence.