He spoke Friday after Trump signed an executive order directing the Treasury secretary to review the Dodd-Frank law.
Friday’s messaging on Dodd-Frank comes as top businesses leaders meet with the Trump team at the White House to implement a strategy to boost the economy and create jobs. “Rolling back conflict of interest protections for retirement savings will take tens of billions of dollars a year out of the pockets of hard-working Americans in order to enrich powerful Wall Street interests”.
From the NY website: Continuing his flurry of executive actions since taking office, President Donald Trump is expected to sign an order sharply limiting the Dodd-Frank Act rules today. But because Dodd-Frank empowered regulators to take care of the details of reining in the financial sector instead of drawing strict legislative lines, Trump’s new appointees have significant power to unwind its protections without input from Congress. Trump has tapped several Goldman Sachs alums for key positions in his administration, and his strategic and policy panel is led by Stephen A. Schwarzman, founder of Blackstone, a massive investment firm. He said Dodd-Frank was a “disastrous policy” that was “crippling” the U.S. economy.
During that time the US Labor Department is to conduct an economic and legal analysis of the regulation and rescind the rule if it is inconsistent with Trump administration priorities, according to the memo, which is not final.
Trump said before the meeting with executives that he wanted to cut “a lot” of Dodd-Frank.
Mr Trump has also scrapped the fiduciary rule, which protects retirees by forcing advisers and brokers to “work in the best interests of their clients”.
The Dodd-Frank act was introduced in 2010 in order to prevent a repeat of the banking crisis of 2008. The Dow soared 186 points on Friday, its best day of 2017, as big bank stocks like Goldman Sachs, JPMorgan Chase and Wells Fargo soared.
Republican lawmakers and some financial firms say the fiduciary rule is deeply flawed, arguing that it will restrict options for consumers and result in some savers being denied advice on their retirements.
“While some targeted relief to community banks is appropriate, we can not afford to undo Dodd Frank’s essential safeguards”. Even after Trump’s election made real the promise of “dismantling” the bill, Dimon and Lloyd Blankfein were offering only the mildest criticisms, saying, in remarkably similar tones, hey, let’s not dump the whole thing but maybe just make some tweaks here and there.