London – U.S. President Donald Trump on Friday ordered reviews of major banking rules that were put in place after the 2008 financial crisis, achieving with that one of his campaign promises.
The Obama administration implemented the measures to reform Wall Street following the 2008 financial crisis such as Dodd-Frank Law which bans the largest firms from making speculative bets with their own money.
During his campaign, Trump promised to steps aimed at rolling back key financial industry regulations, including the Dodd-Frank meant to prevent another banking industry meltdown and a measure requiring financial advisers to act in their clients’ best interest.
But the Trump administration has criticized the regulations, saying they do not protect consumers as intended, and are excessively burdensome and counterproductive.
“We expect to be cutting a lot out of Dodd-Frank, because frankly I have so many people, friends of mine, that have nice businesses and they can’t borrow money,” Trump said on Friday. “They just can’t get any money because the banks just won’t let them borrow because of the rules and regulations in Dodd-Frank.”
Those regulations unnecessarily cramp the U.S. economy and job creation, he declared. But many Democrats see it differently, including Sen. Elizabeth Warren, who was behind the formation of the Consumer Financial Protection Bureau, formed as part of the Dodd-Frank law.
The American Bankers Association (ABA) lauded the measures calling the financial regulations “highly prescriptive,” and thus causing the industry to face “tremendous headwinds” while trying to meet customers’ needs.
ABA said it appreciates the administration’s support for pro-growth policies so banks can go even further in helping communities and the economy thrive.
Public Citizen, a non-governmental organization, said that Trump is proving that he sides with Wall Street despite what he has claimed.