Greenspan: Get rid of Dodd-Frank and Watch Economy and Stocks Soar

Former Federal Reserve Chairman Alan Greenspan told CNBC on Thursday the prospect of getting rid of the Dodd-Frank banking regulations has been a driver of higher stocks and would continue to be.

“If you get rid of Dodd-Frank, it’s going to have a very significant positive impact on the economy,” he said on “Squawk on the Street,” from the sidelines of the IMF-World Bank meeting of finance ministers in Washington.

“In my judgment, that’s where the surge in the stock prices has come from. It’s very difficult to find anything other than that, which I find really positive,” he argued.

In February, President Donald Trump ordered the Treasury and other financial regulators to review the banking and consumer finance rules created under Dodd-Frank, the 2010 law crafted in response to the financial crisis two years earlier.

The tighter rules aimed at preventing taxpayers from having to bailout “too big to fail” banks in the future included higher rainy day capital requirements, which critics say stifle lending and hurt economic growth.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell
Dean Popplewell

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