Trump’s Planned Pruning of Regs Needs to Go Much Further

from The Daily Bell:

Trump to sign executive actions targeting Obama financial regulations … The president is expected to sign a pair of executive orders targeting rules imposed on the financial sector Friday, according to senior White House officials.

The president has signed two executives order that will free up the ability for companies and Wall Street to function with less paperwork and regulatory reporting.

One of the bills that Donald Trump has started to repeal is called Dodd Frank. Part of Dodd Frank deals with the Volcker rule that that forbids banks from making trades for their own accounts.

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Officials said one specific area that will be reviewed is the “Volcker Rule,” a provision of Dodd-Frank that barred banks from making trades for their own profit rather than accountholders.  However, the order will not result in any direct changes to the current regulatory framework, and its impact could be limited.

For one, the vast majority of post-crisis rulemakings were directed by the Dodd-Frank law and could only be removed by another statute from Congress.  Furthermore, most of the regulators charged with implementing those laws are independent and do not answer directly to the president. President Trump has already named new heads of some of those agencies, such as the Securities and Exchange Commission, and other key personnel are expected to be named soon. 

But in two key regulatory posts — the Federal Reserve and Consumer Financial Protection Bureau — Obama appointees have made clear they intend to serve out their terms into 2018.   

While the rules may not be done away with entirely, the impetus will be to ignore them, or at least to give them less precedence. This is good as far as it goes but it doesn’t go far enough, not if Trump wants to make a real difference in how laws work in this country.

If Trump really wants to make a difference, he will sit down and analyze rules that make real changes regarding how companies operate.

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