(NationalSentinel) Regulations: During the campaign then-GOP nominee Donald J. Trump pledged to get rid of the cumbersome and over-regulatory Dodd-Frank “financial reform” bill that was the second major piece of legislation signed by President Obama after the Affordable Care Act.
Critics of the measure have long said that it imposes ridiculously expensive and unnecessary regulations on the financial industry that have led to higher costs both for the banking institutions and the customers they serve, while doing little to actually prevent another financial crisis.
Trump took the first steps on Friday toward his goal, as the Chicago Tribune reports:
During an appearance at the Treasury Department, Trump is scheduled to sign two presidential memos ordering six-month reviews of the 2010 law’s authority for regulators to designate large firms as a risk to the financial system and to try to shut them down with minimal collateral damage if they’re on the verge of failing, the White House said.
Trump also will sign an executive order directing Treasury Secretary Steven T. Mnuchin to review significant changes to the tax code made last year to determine if they “impose an undue financial burden on American taxpayers,” “add undue complexity” or “exceed statutory authority,” the White House said.
These are Cabinet-level executive actions that don’t change federal policies, per se, but rather are designed to provide the president with a review of exiting policy and law and provide him with options on how best to proceed with repeal. But they are a necessary first step, and true to his word on the campaign trail, Trump has taken them.
As reported by the New York Post in February, Trump’s aim at getting rid of Dodd-Frank, which has been widely panned, is to help small businesses launch and grow; small businesses create most of the new jobs in the country each year:
Signed into law by President Barack Obama in 2010, Dodd-Frank was a disaster from the start. The economy was struggling to regain its footing from the financial crisis when the feds threw at the banks a slew of new rules and regulations. They were forced to kill off profitable lines of business and hold huge amounts of capital all while the new rules effectively cut off financing to businesses that could grow the economy right when they needed it.
Trump now appears to be moving forward with restoring some sanity to the banking industry. More will be needed – legislation from Congress, in particular. Since the law passed with virtually no GOP support, it shouldn’t be too much trouble to get rid of it.