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Trump to order review that could relax Dodd-Frank bank rules | Trump to order review that could relax Dodd-Frank bank rules |
(35 minutes later) | |
US President Donald Trump is expected to take his first steps to scale back financial services regulations on Friday. | US President Donald Trump is expected to take his first steps to scale back financial services regulations on Friday. |
He is due to sign an executive order to review the 2010 Dodd-Frank financial regulations, which some people on Wall Street say are overly-restrictive. | He is due to sign an executive order to review the 2010 Dodd-Frank financial regulations, which some people on Wall Street say are overly-restrictive. |
The law was brought in after the 2008-09 financial crisis with the aim of avoiding another financial meltdown. | The law was brought in after the 2008-09 financial crisis with the aim of avoiding another financial meltdown. |
"Dodd-Frank is a disaster," Mr Trump said earlier this week. | "Dodd-Frank is a disaster," Mr Trump said earlier this week. |
He added: "We're going to be doing a big number on Dodd-Frank." | He added: "We're going to be doing a big number on Dodd-Frank." |
Mr Trump made it a campaign pledge to repeal and replace the Dodd-Frank law, which also created the Consumer Financial Protection Bureau (CFPB). | Mr Trump made it a campaign pledge to repeal and replace the Dodd-Frank law, which also created the Consumer Financial Protection Bureau (CFPB). |
This US government agency seeks to make sure banks, lenders, and other financial companies treat US consumers fairly. | |
Dodd-Frank, named after the Congressmen who campaigned for the legislation, was introduced to restrict risky practices by banks and other financial companies. | Dodd-Frank, named after the Congressmen who campaigned for the legislation, was introduced to restrict risky practices by banks and other financial companies. |
But Trump administration officials have said Dodd-Frank did not achieve what it set out to do, and argue that is an example of government being overly-controlling. | But Trump administration officials have said Dodd-Frank did not achieve what it set out to do, and argue that is an example of government being overly-controlling. |
What is Dodd-Frank? | |
The executive order will direct the Treasury secretary to consult members of different regulatory agencies and the Financial Stability Oversight Council, and report back on potential changes. | The executive order will direct the Treasury secretary to consult members of different regulatory agencies and the Financial Stability Oversight Council, and report back on potential changes. |
Mr Trump will also sign a presidential memorandum instructing the Labor Department to delay bringing in an Obama-era rule requiring financial professionals to put their clients' interests first when giving advice on retirement investments. | Mr Trump will also sign a presidential memorandum instructing the Labor Department to delay bringing in an Obama-era rule requiring financial professionals to put their clients' interests first when giving advice on retirement investments. |
The rule, which was set to take effect in April, will be delayed for 90 days while it is reviewed. | The rule, which was set to take effect in April, will be delayed for 90 days while it is reviewed. |
Meeting with executives | Meeting with executives |
The so-called "fiduciary rule" was aimed at blocking financial advisers from steering clients toward investments with higher commissions and fees that can eat into retirement savings. | The so-called "fiduciary rule" was aimed at blocking financial advisers from steering clients toward investments with higher commissions and fees that can eat into retirement savings. |
Critics say the rule limits retirees' investment choices by forcing asset managers to steer them to low risk options. | Critics say the rule limits retirees' investment choices by forcing asset managers to steer them to low risk options. |
Also on Friday, Mr Trump is meeting with his business advisory group of senior US executives. | Also on Friday, Mr Trump is meeting with his business advisory group of senior US executives. |
It will be the first meeting of the Strategic and Policy Forum, a group of executives that includes Jamie Dimon, of banking giant JPMorgan Chase, and Mary Barra chief executive of carmaker General Motors. | |
Travis Kalanick, the chief executive of ride-sharing service Uber, stepped down from the economic advisory group after strong criticism from staff and the public. | Travis Kalanick, the chief executive of ride-sharing service Uber, stepped down from the economic advisory group after strong criticism from staff and the public. |
Mr Trump tweeted on Friday: "Meeting with biggest business leaders this morning. Good jobs are coming back to US, health care and tax bills are being crafted NOW!" | Mr Trump tweeted on Friday: "Meeting with biggest business leaders this morning. Good jobs are coming back to US, health care and tax bills are being crafted NOW!" |