Another directive is to stall the implementation of a rule from the previous Obama administration that would compel brokers to work for the best interest of the client when giving recommendations for retirement instead of working for the highest possible profits. According to the Sean Spicer, White House press secretary, the Dodd Frank is a policy that can ruin the US economy. To determine the tremendous risks of the said economic policy to the US financial system, the treasury secretary has given 120 days to have a consultation with the FSOC or Financial Stability Oversight Council.
After the allotted time, the secretary has to return with an assessment report that will identify if the policy complies with Trump’s core principles when it comes to financial regulation. The following are the components of the said core principles:
- Prevention of taxpayer-funded bailouts.
- Fostering economic growth.
- Advancement of American interests in global financial regulatory negotiations and meetings.
- Enabling US companies to be competitive with foreign firms in both local and foreign markets.
On the other hand, Trump is now accused by the opponents of the reform of submitting to the Wall Street due to the promises he made during the campaign which is to hold bank accountable. Senator Elizabeth Warren, a Trump’s critic, wants to find out to whom the president is serving for. She reminded everyone about the 2008 financial crisis.
Prior to the signing, Trump met with his 18 executives as part of his business advisory panel thatcomes from various huge US companies. Trump pointed out a lot of good business that can’t get money because the Dodd-Frank regulations and rules hinders bank to lend money.
Here’s to helping you better understand what’s in your pocket.
Until next time.
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