trump rollback of banking regulation well underway
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
Last Updated : GMT 09:40:38
Themuslimchronicle, themuslimchronicle

Trump rollback of banking regulation well underway

Themuslimchronicle, themuslimchronicle

Themuslimchronicle, themuslimchronicleTrump rollback of banking regulation well underway

US Federal Reserve chief Janet Yellen
Washington - Muslimchronicle

President Donald Trump's promised rollback of banking regulation is well underway, with vacancies at the top of key agencies and new legislation in the works.

Since the start of his presidency, Trump has decried the financial rules and regulations put in place to combat the excesses that led to the financial crisis through the Dodd-Frank Wall Street reform legislation of 2010.

"We expect to be cutting a lot out of Dodd-Frank because, frankly, I have so many people, friends of mine, that have nice businesses that can't borrow money," he said in February.

And Trump will have an unprecedented opportunity in coming months to reshape the agencies in charge of regulation, as he fills key positions.

At the Federal Reserve, which has a central role in regulating banks, he will have the opportunity to fill at least three of the seven seats on the central bank's board.

He recently named a successor for Fed chair Janet Yellen, tapping former investment banker and current Fed Governor Jerome Powell.

In the latest critical development, Richard Cordray, the first director of the Consumer Financial Protection Bureau (CFPB) who had long been in the banking industry's crosshairs, announced last week he would step down by the end of the month, several months early.

The Senate also last week confirmed Joseph Otting, a banking executive and associate of Treasury Secretary Steven Mnuchin, with decades at major commercial lenders, as the new head of the Treasury's Office of the Comptroller of the Currency, a principal banking regulator.

Likewise, the Securities and Exchange Commission, a markets regulator that polices Wall Street's biggest banks, is now led by a Trump appointee.

Senior SEC officials have signaled this year they may shift away from the aggressive prosecutorial approach of the previous administration and early signs are that enforcement activity, particularly for financial institutions, has fallen.

- 'Different tone' -

Even as these personnel changes remain in the future, the industry already is experiencing a "different tone" and an "industry-friendly approach" from government, according to Wayne Abernathy, a senior executive at the American Bankers Association.

In an interview, Abernathy said he expected the Fed under Powell to move more quickly down the path already forged by Yellen.

"He will be accelerating the process of reforms which she had already begun," he said.

While the Fed may have shown willingness to modify some financial oversight, especially those that were very onerous for smaller banks, observers said Yellen hurt her chances of winning a second term by forcefully defending Dodd-Frank regulations in an address over the summer.

"Any adjustments to the regulatory framework should be modest and preserve the increase in resilience at large dealers and banks associated with the reforms put in place in recent years," she said at the time.

Mnuchin, a former Goldman Sachs banker, early in the administration promised regional banks he would work to set a new tone in regulation.

Since then, Treasury has produced three reports calling for a whittling down of rules imposed on mid-size banks, a scaling back of stress tests and a restructuring of the CFPB.

Republicans have long deemed the bureau too far outside political control, saying it waters down of the so-called Volcker Rule, which limits certain speculative trading with a bank's own funds.

"They'll get away with everything they can," said economist Dean Baker, co-founder of the Center for Economic and Policy Research, about the regulatory rollback.

"It's just going in the wrong direction, again allowing abuses that might not threaten the stability of the financial system but just will be a waste and possibly hurt people," he told AFP.

- Barney Frank isn't worried -

Another flashpoint has been the Dodd-Frank capital requirements imposed on major financial institutions, those deemed "too big to fail" because their bankruptcies would endanger the financial system and wider economy. These requirements are "very expansive and very complex," Abernathy said.

In some areas, such as easing rules for smaller banks, there is greater consensus, and even buy-in from Democrats.

Senators from both parties early last week announced an agreement on proposed reforms to ease the burdens of compliance that regional banks face.

 

In another move greeted favorably by industry, regulators expect to require banks to submit so-called living wills -- or plans for how they would be dismantled in the event of failure -- every two years instead of annually.

Even with the changes, however, retired congressman Barney Frank, whose name is on the Dodd-Frank reform legislation, said he was not concerned that deregulation could cause turmoil.

"There are negotiations going on now for small adjustments for smaller banks, medium banks but I'm for it," he told AFP.

"There will be no legislative changes in the framework except for minor ones that Democrats agree to," said Frank, adding that the Republicans "don't have the votes."

source: AFP

themuslimchronicle
themuslimchronicle

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

trump rollback of banking regulation well underway trump rollback of banking regulation well underway

 



Themuslimchronicle, themuslimchronicle

GMT 20:16 2018 Thursday ,18 January

World Cup likely target for ISIS

GMT 12:29 2017 Thursday ,12 October

Saudi startup wins global competition

GMT 10:32 2017 Monday ,06 November

5 takeaways from Trump in Japan

GMT 13:33 2017 Saturday ,21 October

Eman underlines importance of festivals

GMT 23:12 2016 Saturday ,16 April

Suspected Rwandan rebels attack police station

GMT 08:18 2017 Saturday ,21 January

CIA revealed U.S pressures on Saddam to attack Syria

GMT 04:58 2017 Wednesday ,01 March

Ava DuVernay makes anti-Trump statement at the Oscars

GMT 13:45 2012 Monday ,16 January

Iran's intelligence penetrates the wall of China

GMT 23:16 2017 Monday ,20 March

Look: Dubai has the world's 'happiest tower'

GMT 09:19 2011 Tuesday ,28 June

Climate changes to spur floods in Russia

GMT 14:34 2017 Tuesday ,05 December

Jordan sentences Syrian to hang over border bombing

GMT 07:35 2017 Monday ,11 September

Russian strikes kill 34 civilians near Deir Ezzor

GMT 17:26 2018 Friday ,19 January

Indonesian president to visit Pakistan on Jan. 26

GMT 12:26 2012 Thursday ,28 June

Pakistan releases Indian spy
Themuslimchronicle, themuslimchronicle
Themuslimchronicle, themuslimchronicle
 
 Themuslimchronicle Facebook,themuslimchronicle facebook  Themuslimchronicle Twitter,themuslimchronicle twitter Themuslimchronicle Rss,themuslimchronicle rss  Themuslimchronicle Youtube,themuslimchronicle youtube  Themuslimchronicle Youtube,themuslimchronicle youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©

muslimchronicle muslimchronicle muslimchronicle muslimchronicle
themuslimchronicle themuslimchronicle themuslimchronicle
themuslimchronicle
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
themuslimchronicle, themuslimchronicle, themuslimchronicle