Last week House Republicans voted unanimously—with one oddball exception—to repeal big swaths of the Dodd-Frank financial reform act. This was, perhaps, not surprising since only six Republicans voted for Dodd-Frank in the first place. Today, the Trump administration weighed in: Treasury Secretary Steven T. Mnuchin on Monday proposed sweeping changes to the tough Dodd-Frank regulations put in place after the 2008 financial crisis, including a major reduction in the power of the Consumer Financial Protection Bureau…reducing oversight of large financial institutions, providing even more regulatory relief for smaller banks and loosening new mortgage restrictions designed to prevent a repeat of the subprime meltdown. ….“A sensible rebalancing of regulatory principles is warranted in light of the significant improvement in the strength of the financial system and the economy, as well as the benefit of perspective since the Great Recession,” the report said….The report, which included dozens of recommendations, is the first of three ordered by Trump as he looks to fulfill a campaign promise to dismantle the Dodd-Frank Wall Street Reform and Consumer Protection Act. Put all this together, and it’s pretty obvious that Dodd-Frank is essentially gone if it all passes. It’s even possible that Wall Street would, on net, end up less regulated than it was before the Great Crash.
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