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Trump Promises To Replace Dodd-Frank With ‘Something Else’

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Robert Donachie Capitol Hill and Health Care Reporter
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President Donald Trump promised a group of business leaders Tuesday that his administration is working on retooling Dodd-Frank, and will be replacing the law with “something else.”

Trump ordered a thorough review in February of the Dodd-Frank Wall Street Reform and Consumer Protection Act enacted in 2010 under the Obama Administration, following the housing crisis of 2007. Trump’s order required Treasury Secretary Steve Mnuchin to review the current regulatory environment and submit a report detailing the regulatory roll backs Trump’s administration could pursue. The report is set for release in June.

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Trump has been adamant that he cannot push forward with financial and regulatory reform until Republicans are able to repeal and replace Obamacare. Trump’s comments Tuesday show that his administration still plans on moving forward with the litany of pro-growth policies the president promised on the campaign trail.

Trump hinted that those in the financial industry will be more than pleased with the proposed reforms to Dodd-Frank. “For the bankers in the room, they’ll be very happy because we’re really doing a major streamlining and, perhaps, elimination, and replacing it with something else,” Trump said Tuesday. “That will be the minimum. But we’re doing a major elimination of the horrendous Dodd-Frank regulations, keeping some obviously, but getting rid of many.”

The administration will not be able to reform Dodd-Frank without the help of Congress, since the act is almost entirely carried out by independent agencies like the Federal Reserve Bank and the Securities and Exchange Commission. With lawmakers locked in to a contentious health care debate, investors shouldn’t expect a congressional action in the near-term, Reuters reports.

Dodd-Frank was originally intended to increase transparency by implementing a consistent set of regulations aimed at closing loopholes and making firms accountable for their own mistakes. The bill attempted to shift the burden of major financial mistakes from taxpayers to market participants, ensuring those who partake in risky investment practices would bear the financial burden of their mistakes. Dodd-Frank promised to “end too big to fail” and “promote financial stability.”

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