Lawyers say Trump executive order does not overhaul Dodd-Frank
More like a call for analysis and review
President Donald Trump’s executive order to roll back the Dodd-Frank Wall Street Reform Act doesn’t do much by itself. Instead, the move mostly points to an already existing act championed by House Financial Services Committee Chairman Rep. Jeb Hensarling, R-Texas, to replace Dodd-Frank, a blog post from Mayer Brown attorneys Laurence Platt and Joy Tsai stated.
The blog stated that the order, which Trump signed Feb. 3 with Hensarling right by his side, sets out the core principles for regulating the financial system.
Despite calls that his administration would be “doing a big number on Dodd-Frank,” the blog stated, “His recent executive order on core principles appears to be more of a tempered call for analysis and review rather than an outright demolition of existing financial regulations, especially when read in light of the administration’s more drastic requirement that executive agencies must eliminate two existing regulations for each new one that it issues.”
What the order does show, the blog explained, is where the administration’s policy is likely headed.
The blog stated that the core principles identified in the executive order mirror key principles in the “Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs” Act (CHOICE Act) by Hensarling. “A sign that the Executive and Legislative branches intend to collaborate to replace at least some Dodd-Frank provisions with CHOICE,” the blog stated.
And Hensarling also pointed out the similarities, saying that much of the order “mirrors” the Financial CHOICE Act, the Republican-led effort to repeal and replace Dodd-Frank.
“I’m very pleased that President Trump signed this executive action, which closely mirrors provisions that are found in the Financial CHOICE Act to end Wall Street bailouts, end ‘too big to fail,’ and end top-down regulations that make it harder for our economy to grow and for hardworking Americans to achieve financial independence,” Hensarling said.
After looking at the order, the blog stated that in itself it is not a significant overhaul of Dodd-Frank.
The core principles in the executive order should simply be viewed as a policy placeholder for the re-thinking of Dodd-Frank, in terms of both potential legislative and regulatory changes, the blog stated.