The Trump administration is going to need more time to review Dodd-Frank, extending the timeline beyond its original June target, an article in Reuters by Olivia Oran and Pete Schroeder stated.
According to the article, which cited sources familiar with the matter, officials will now report findings piece-by-piece, with priority given to banking regulations.
Back in February, President Donald Trump signed an executive order that initiated the process to roll back the Dodd-Frank Wall Street Reform Act, the landmark legislation passed in wake of the financial crisis. According to the order, “The Secretary of the Treasury shall consult with the heads of the member agencies of the Financial Stability Oversight Council and shall report to the President within 120 days of the date of this order.”
But the Treasury Department is still filling vacancies after the transition from the Obama administration and there are not enough officials to get the full review done by early June, three sources said.
Instead, the Treasury Department will first report back on what banking rules could be changed including capital requirements, restrictions on leverage and speculative trading.
Examinations of capital markets, clearing houses and derivatives as well as the insurance and asset management industries and financial innovation and banking technology will come later, the sources said.
When President Trump signed the order, Gary Cohn, the White House National Economic Council Director and a former top executive at Goldman Sachs, and House Financial Services Committee Chairman Rep. Jeb Hensarling, R-Texas, were by his side.
As this is going on, Hensarling’s Financial CHOICE Act, H.R. 10, which is the Republican-leading act to replace the Dodd-Frank Wall Street Reform and Consumer Protection Act, is on its way to the full House for approval.