Finance

Trump Doesn’t Know What Dodd-Frank Does, But He Wants to Repeal It

JM Ashby
Written by JM Ashby

Trump is expected to sign an executive order today that will begin the process of repealing the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

Why? Well, because his friends want more money.

More:

"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 and former Goldman Sachs Chief Operating Officer, Gary Cohn, told the Wall Street Journal.

If you remember the Bush economy and the 2008 financial crisis, you probably don't need me to spell it out for you. To say that Americans are going to have better "choices" and "products" means Americans will once again have an opportunity to make financially-dubious investments in real estate and securities that were no longer legal under Dodd-Frank.

I feel like I'd be remiss not to add that the far left and Trump more or less see eye-to-eye on Dodd-Frank and Wall Street reform.

The far left may not want to see Wall Street deregulated, but they don't believe it was ever regulated to begin with. They enabled Trump's rise and his current actions by casting Dodd-Frank as worthless legislation and by accusing Hillary Clinton of being a Wall Street sellout. According to the far left, Trump's actions will not change anything and Clinton would have done something as bad if not worse.

Trump is also set to roll back a fiduciary rule that prohibits investors from misleading their clients which, again, wouldn't be happening today if we had elected the right person.

Trump has appointed half a dozen Goldman Sachs alumni to his cabinet, including chief strategist Steve Bannon.

  • Wookie Monster

    Dodd-Frank, like the ACA, is an act of Congress, and can only be repealed by another act of Congress. I don’t get why Trump is putting all these executive orders out that basically just say, “I want this law repealed.” Does he think Congress is required to obey his EOs?

    Now, granted, most republicans in Congress really want to repeal both laws and anything else relating to the reign of the Evil Kenyan Atheist Muslim Nazi Pinko Commie Fascist Usurper. But is it really necessary to have an executive order calling for their repeal?

    • Christopher Foxx

      Does he think Congress is required to obey his EOs?

      In all honesty and seriously, I believe he does. Trump seems to think President = Dictator, that the way the government is designed to work is the President says he wants something done and it becomes law.

  • muselet

    Let’s look on the bright side.

    If the financial industry provides Americans with “better choices” and “better products,” and financial advisers can freely bilk their clients, the resulting economic implosion—one which will make the Great Depression of 1929–39 look like The Good Old Days—will make it impossible for Donald Trump to deregulate much more of the economy, since the economy will no longer exist.

    And yes, that’s the bright side.

    –alopecia

  • Dread_Pirate_Mathius

    As both a member of the “far left” and of the high finance industry, I’m not really feeling the love right now, Ashby.

  • ninjaf

    Time to put the house on the market before the housing market crashes again.

    (I feel like a tin foil hat loony, but we’ve been down this road before! How long before they start airing “buy gold” commercials in liberal enclaves?)

  • Dread_Pirate_Mathius

    I deal with DF on a daily basis. Is it the primary reason for alcohol consumption in my life. I hate – hate – DF for what a colossal pain in my ass it is.

    We have spent hundreds of thousands complying with it. Money we’ve given to lawyers and administrators and software companies, but which I would be much happier giving to my staff (and, of course, myself as well).

    But I can’t. Because f’ing DF is the bane of my existence. Form PF alone is enough to give me post-traumatic flashbacks. It is so mindbogglingly convoluted and redundant and either obsessively anally specific or infuriatingly vague. I have lost hundreds of hours of my life to DF regs – hours I would much rather have spent hand-carving a canoe.

    With all that said, and while it’s far from perfect, it is a critically important piece of legislation – and its repeal would be disastrous.

    And you can trust me on that because I hate it with a burning passion – so if I say we should keep it, you can take that to the bank.

  • Scopedog

    I feel like I’d be remiss not to add that the far left and Trump more or less see eye-to-eye on Dodd-Frank and Wall Street reform.

    Go right ahead and say it, Ashby–because you are 100% right.