Reality TV star-turned-president Donald J. Trump has signed an executive order today that unravels much of the 2010 Dodd-Frank legislation that reigned in Wall Street.
In an interview with The Wall Street Journal, White House National Economic Council Director and former Goldman Sachs CEO Gary Cohn framed the move to deregulate financial markets as a way to give Americans “better choices.”
Every Bernie bro who said Trump would be tougher on Wall Street than Hillary should enjoy watching this. https://t.co/f2BQjbmrrZ
— Michael Grunwald (@MikeGrunwald) February 3, 2017
“Americans are going to have better products because we’re not going to burden the banks with literally hundreds of billions of dollars of regulatory costs every year,” Cohn said. “The banks are going to be able to price product more efficiently and more effectively to consumers.”
Translated, that means Trump wants to let banks charge more and take bigger risks. For example, his order will nix Obama’s fiduciary rule, which requires retirement advisers to act in the best interests of their clients rather than the investment company.
President Trump says he plans to roll back Dodd-Frank financial regulations because so many friends of his in business can't borrow money pic.twitter.com/Ibm9qeRbJK
— Bradd Jaffy (@BraddJaffy) February 3, 2017
Twisting truth in Orwellian fashion, Press Secretary Sean Spicer indicated that the Consumer Financial Protection Bureau would be diminished because it “does not adequately protect consumers.”
Spicer:Dodd-Frank "not doing the job."
CFPB has returned more than $5B to cheated consumers.
Ask Wells-Fargo how well it's doing its job.
— Charles P. Pierce (@CharlesPPierce) February 3, 2017
Knowledgeable people rejected the administration’s justification for overturning an act of Congress by decree and debated the wisdom of returning to the status quo which allowed the 2008 financial disaster, cratering the US economy.
the DF regulatory work was directed by statute. To kill those regs would require another statute. Could be weakened but that's long process.
— Pete Schroeder (@peteschroeder) February 3, 2017
— Kevin M. Kruse (@KevinMKruse) February 3, 2017
— David Enrich (@davidenrich) February 3, 2017
Meanwhile, the Twitterverse vented quite a bit of anger.
"Yes, let's dump #doddfrank and help out all Don's business pals" said no American citizen ever…..
— Deebs (@deebeetree) February 3, 2017
— Melissa (@melymj4) February 3, 2017
— Irreverend Walker (@IrreverendW) February 3, 2017
— Kevin Cirilli (@kevcirilli) February 3, 2017
Inevitably, some people tried to sweeten the bitter pill with a bit of humor.
Trump to repeal Dodd-Frank in dramatic last-ditch effort to elect Bernie Sanders in 2020.
— John Fugelsang (@JohnFugelsang) February 3, 2017
Dodd Frank has been terrible for the market. The Dow has only increased 92% since it went into effect.
— Stephen Fishbach (@stephenfishbach) February 3, 2017
Good on Trump, scaling back Dodd-Frank. Win for the little g—*aide tells me Dodd-Frank is about finance, not manufacturing or whatever* Wait
— Patrick Monahan (@pattymo) February 3, 2017
In fairness, Dodd-Frank failed to protect us from the Bowling Green Massacre.
— Downtown Josh Brown (@ReformedBroker) February 3, 2017
But this is a serious matter. When Gary Cohn whines that America has “the most highly regulated, overburdened banks in the world,” what he’s really saying is that Goldman Sachs wants to inflate new speculative bubbles.
Undoing of Dodd-Frank will inevitably bring on the next Republican mega-crash; a Dem administration repairs the damage and the cycle goes on
— Simon Schama (@simon_schama) February 3, 2017