President Donald Trump has begun his offensive on banking rules that were brought into effect shortly after the recent economic crisis, pledging to free major banks and lenders from various restrictions and following through on promises made to investment chiefs and business leaders. He news was warmly welcomed on Wall Street, though is likely to do little to inspire or encourage the working classes.
Friday saw Trump as his Treasury secretary to begin a review of the 2010 Dodd-Frank financial oversight law – incredibly complicated legislation enacted by Barack Obama following the housing and financial crisis. Its primary aim was to impose restriction on the actions and inactions of major banks which many believed were responsible for the onset of the crisis.
“We’re going to be doing a big number on Dodd-Frank,” Trump said earlier in the week, making it clear that he believed the legislation brought about disastrous and counterproductive consequences for the country’s biggest banks.
On Friday, he spoke at a meeting with JPMorgan Chase CEO Jamie Dimon and other business leaders regarding the apparent unfairness of the imposed legislation.
“Frankly I have so many people, friends of mine that have nice businesses that can’t borrow money,” he said.
“They just can’t get any money because the banks just won’t let ‘em borrow because of the rules and regulations of Dodd-Frank.”
Advocates insist that the regulations make it unnecessarily difficult for banks to do business and in turn have a negative effect on both job creation and the US economy in general. By contrast, Democrats including Sen. Elizabeth Warren see things very differently.
“Donald Trump talked a big game about Wall Street during his campaign — but as president, we’re finding out whose side he’s really on,” Warren said in a statement.
“The Wall Street bankers and lobbyists whose greed and recklessness nearly destroyed this country may be toasting each other with champagne, but the American people have not forgotten the 2008 financial crisis — and they will not forget what happened today.”
Since its establishment as part of the Dodd-Frank initiative, the Consumer Financial Protection Bureau has recovered $11.7 billion that it returned to more than 27 million harmed consumers.
Critics warn that to mount a full-frontal attack on the bureau will have a direct negative impact on consumers, many of whom are currently strong supporters of the Trump Administration.