Washington (AFP) – president Donald Trump will sign this Friday two decrees referring to the key reforms adopted in the field of financial regulation in the wake of the financial crisis of 2008, a-t-on learned from a government source.
Donald Trump going to ask the Treasury and the department of Labour to focus on reform measures of Dodd-Frank and the “Volcker rule” governing the financial sector, designed to avoid the excesses on the markets and to protect consumers further, indicated to the AFP an official of the administration.
The Treasury department will need to determine the possible changes which may be made to the Dodd-Frank act, response of 848 pages of the Obama administration to the financial crisis, regulating the sector and re-promulgated in 2010.
The law had notably created the consumer protection agency (CFPB), and required banks to retain more capital in order to prevent over-indebtedness.
The review will also focus on the “Volcker rule” curbing some of the speculative investments.
“(We) believe that the Dodd-Frank act was in many respects an excess of zeal to the government”, said an official of the administration, according to which the decrees will be signed this Friday by Donald Trump.
“It has imposed hundreds of new regulations to financial institutions and for financial companies, this has led to a huge amount of work and effort”, he added.
republicans have not hidden their aversion for the consumer protection agency and intention of the reform.
Any repeal, substantial of the Dodd-Frank act requires the consent of the Congress, but the administration, Trump wishes to make it known that she intends to tackle the paperwork.
“We want to market very dynamic, very open, very transparent, without having to bear the huge burden of regulation,” said the manager.
For his part, the director of the national economic Council at the White House Gary Cohn, who has been number two of the investment bank Goldman Sachs Group before joining the administration, Trump said that the goal of deregulating the financial markets had “nothing to do with Goldman Sachs”.
“This has nothing to do with J. P. Morgan, Citigroup and Bank of America. It is to be an actor on the world market where we must, can and will have a dominant position as long as we don’t put ourselves in the gap by the regulations”.
“The Americans will have better choices and better products because we’re not going to increase the costs of banks with regulatory costs, which amounted to literally hundreds of billions of dollars per year,” assured Mr. Cohn in an interview with the Wall Street Journal, stating that “the banks were going to be able to set their prices more efficiently and thus better for consumers.”
another decree, which must be signed targeting the ruler trustee, which requires financial advisors to act in the best interest of their clients. A rule that has proved costly for the investment companies, according to this manager.
This rule should enter into force in April, but it will be postponed, pending its review.