It has taken seven years to put in place the regulatory strictures imposed on Wall Street after the financial crisis. They won’t be removed fast or easily.
President Donald Trump’s Friday directive that set in motion a scaling back of the Dodd-Frank Act was more pageantry than policy, said lawyers and former government officials who worked on the 2010 law. While the expectation for quick action sent bank stocks higher Friday, numerous road-blocks remain before lenders get relief.
Chief among the hurdles is that Trump doesn’t have any of his appointees running the agencies that oversee financial rules. Congress, too, will have to pass new legislation for many Dodd-Frank regulations to be eased. And the president’s decision to put two former Goldman Sachs Group Inc. partners in charge of the effort — less than a decade after the bank’s traders helped bring the economy to the edge of collapse — galvanized opposition from Democrats.
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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.
Craig Erlam
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