Donald Trump Has Begun A Frontal Assault on Financial Reform

Populist on the Trail Trump Pivots Toward the Banking Industry

The regulation, known as the fiduciary rule, is scheduled to go into effect April 10.

WASHINGTON ― One of the Donald Trump administration's first orders of business on the economy will scuttle a rule protecting retirees from being scammed out of $17 billion a year by their own financial advisers. "That betrays the promises Trump made to stand up to Wall Street, and it will have dire consequences if he's successful".

At a meeting Friday morning with business leaders and CEOs, Trump spoke to his motivation for cutting back Dodd-Frank's regulations on finance and lending.

Bartiromo said the main criticism of the Dodd-Frank law was that it forced "small and mid-cap banks.to hold capital" in the event there was another crash.

The US president yesterday signed an executive order to review the sweeping, 2,300-page legislation that his predecessor, Barack Obama, signed into law in 2010. As part of this, the new United States president is likely to sign two executive orders asking the Treasury and the Labor Departments to look into ways of reforming rules that were created to make markets safer and give consumers more protection.

The White House will also enact another executive action that will dismantle the Department of Labor's controversial Fiduciary Rule that critics argue would upend the retirement-account advisory business.

The president's orders will lead to a review and possible reversal of Dodd-Frank.

Bank stocks were up in premarket trading on Friday, in advance of Trump's plans to meet with CEOs of major U.S. companies including JP Morgan Chase & Co.

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Warren, a Massachusetts Democrat, issued another defense of the so-called fiduciary rule by relating stories of how financial firms offered their agents incentives, such as vacations to Ireland and South Africa, and iPads and sports tickets, to sell certain higher-priced investments to consumers.

"So today you're going to start seeing the beginning of some of our executive actions to roll back regulation in the financial services market", he said.

"There's nobody better to tell me about Dodd-Frank than Jamie, so you're going to tell me about it", Trump said.

In response, financial stocks rose on the New York Stock Exchange.

Many of the Act's supporters point to the billions of dollars returned to US consumers through regulatory actions mounted by the Consumer Finance Protection Bureau, an agency created by the Act whose future is now in doubt. The CFPB has proved an effective consumer watchdog and has returned over $11bn to the victims of payday lenders, loan sharks and those charged excessive overdraft fees since its creation.

The rule was meant to prevent conflicts of interest by financial advisers and brokers. "That will be especially cruel to those savaged by big banks and who also supported Donald Trump's candidacy". "This is a law that was passed by Congress and needs to be change by Congress".

Mnuchin has said he wants to reform the Volcker Rule to make sure there aren't unintended consequences that hurt markets.

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