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| Trump orders review that could relax Dodd-Frank bank rules | Trump orders review that could relax Dodd-Frank bank rules |
| (35 minutes later) | |
| US President Donald Trump has taken his first step to try to scale back US financial services regulations. | US President Donald Trump has taken his first step to try to scale back US financial services regulations. |
| He signed an executive order to review the 2010 Dodd-Frank financial regulations, which some people on Wall Street say are overly-restrictive. | He signed 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 act, which also created the Consumer Financial Protection Bureau (CFPB). | Mr Trump made it a campaign pledge to repeal and replace the Dodd-Frank act, 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. | 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 rein in banks' risky practices by banks and other financial companies. | Dodd-Frank, named after the Congressmen who campaigned for the legislation, was introduced to rein in banks' risky practices by banks and other financial companies. |
| Good move, bad move | Good move, bad move |
| 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. |
| News that a review was imminent sent banking shares higher on Wall Street and on the main stock markets in Europe. Goldman Sachs and JP Morgan Chase rose 4% and 2.5% respectively. | News that a review was imminent sent banking shares higher on Wall Street and on the main stock markets in Europe. Goldman Sachs and JP Morgan Chase rose 4% and 2.5% respectively. |
| "The banks are going to be able to price products more efficiently and more effectively to consumers," Gary Cohn, an adviser to Mr Trump and a former Goldman Sachs executive, told the Wall Street Journal. | "The banks are going to be able to price products more efficiently and more effectively to consumers," Gary Cohn, an adviser to Mr Trump and a former Goldman Sachs executive, told the Wall Street Journal. |
| Market analyst Jasper Lawler at the London Capital Group said that "unwinding some of Dodd-Frank is a good thing because it will enable smaller community banks to compete, offering competition to consumers." | Market analyst Jasper Lawler at the London Capital Group said that "unwinding some of Dodd-Frank is a good thing because it will enable smaller community banks to compete, offering competition to consumers." |
| But he said that scrapping the whole of Dodd-Frank "puts the entire system at risk of a repeat of 2008". | But he said that scrapping the whole of Dodd-Frank "puts the entire system at risk of a repeat of 2008". |
| And Sweden's minister for financial stability Per Bolund told the country's TT news agency that a repeal would be "dangerous, harmful and extremely unfortunate". | And Sweden's minister for financial stability Per Bolund told the country's TT news agency that a repeal would be "dangerous, harmful and extremely unfortunate". |
| What is Dodd-Frank? | What is Dodd-Frank? |
| The executive order directs 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 directs the Treasury secretary to consult members of different regulatory agencies and the Financial Stability Oversight Council, and report back on potential changes. |
| Mr Trump also signed 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 also signed 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 180 days while it is reviewed. | |
| 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. |
| Analysis: Tara McKelvey, White House reporter: | Analysis: Tara McKelvey, White House reporter: |
| President Trump wants to "do a big number", as he put it, on the Dodd-Frank act, a law that changed financial regulation after the 2008 crisis. | President Trump wants to "do a big number", as he put it, on the Dodd-Frank act, a law that changed financial regulation after the 2008 crisis. |
| On Thursday evening, a senior White House official told me and other reporters about their plans to examine the act and the regulatory system. | On Thursday evening, a senior White House official told me and other reporters about their plans to examine the act and the regulatory system. |
| Speaking in the West Wing, the official described Dodd-Frank as "massive government over-reach", and said that an overhaul of the system would empower consumers, giving them a chance to make "independent" financial decisions. | Speaking in the West Wing, the official described Dodd-Frank as "massive government over-reach", and said that an overhaul of the system would empower consumers, giving them a chance to make "independent" financial decisions. |
| People in the financial industry have welcomed the chance to dismantle Dodd-Frank, and to make other regulatory changes. | People in the financial industry have welcomed the chance to dismantle Dodd-Frank, and to make other regulatory changes. |
| So, have bankers been pushing the Trump camp for change? We didn't exactly get a straight answer. | So, have bankers been pushing the Trump camp for change? We didn't exactly get a straight answer. |
| The White House official did tell us, however, that he's confident that they're giving consumers "what they want." | The White House official did tell us, however, that he's confident that they're giving consumers "what they want." |
| Mr Trump is also meeting with his business advisory group of senior US executives on Friday. | Mr Trump is also meeting with his business advisory group of senior US executives on Friday. |
| 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. | 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!" |
| Oil and gas rule | Oil and gas rule |
| Also on Friday, the Senate voted to stop a regulation that would have required oil and gas companies to disclose payments to the US or foreign governments for commercial development. | Also on Friday, the Senate voted to stop a regulation that would have required oil and gas companies to disclose payments to the US or foreign governments for commercial development. |
| The House of Representatives approved the measure this week, and Mr Trump is expected to sign it. | The House of Representatives approved the measure this week, and Mr Trump is expected to sign it. |
| Republicans said the regulation gives foreign competitors valuable information about US firms. | Republicans said the regulation gives foreign competitors valuable information about US firms. |
| Democrats said getting rid of the requirement means big companies will be able to hide questionable dealings with foreign governments like Russia. | Democrats said getting rid of the requirement means big companies will be able to hide questionable dealings with foreign governments like Russia. |