It was announced Wednesday that President-elect Donald Trump has tapped Steven Mnunchin, formally with Goldman Sachs, to the lead the Treasury. Following the announcement, Mnuchin wasted no time laying out his general priorities for financial services reforms in 2017, which included reforming the Dodd-Frank Act and the Volcker Rule in particular, easing the burden on regional banks, and potentially returning Fannie Mae and Freddie Mac to private control.
Appearing on CNBC’s “Squawk Box” Wednesday, Mnunchin expressed intentions to target the costly and burdensome Dodd-Frank Act, stating:
“The number one problem with Dodd-Frank is it’s way to complicated and it cuts back lending, so we want to strip back parts of Dodd-Frank that prevent banks from lending and that will be the number one priority on the regulatory side.”
Since enactment over six years ago, the Dodd-Frank Act has unleashed a slew of costly and burdensome regulations that have forced many community banks out of the market, chilled small business lending, and general reduced American financial competitiveness, among other problems.
Mnuchin will be in good company for prioritizing Dodd-Frank reform next year, as President-elect Trump has already vowed to “dismantle Dodd-Frank” and freeze or scrap other financial regulations such as the Department of Labor’s Fiduciary Rule.
President Trump and Mnuchin will have their work cut out for them somewhat, as House Financial Services Committee Chairman Jeb Hensarling has laid out a financial reform blueprint with the Financial CHOICE Act he introduced this year.
Hernsarling’s CHOICE Act looks to repeal burdensome regulations such as the Volcker Rule and Durbin Amendment, and rein in out of control regulators such as the Consumer Financial Protection Bureau and Financial Stability Oversight Council, in addition to a number of other reforms.
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