Trump Signs Dodd-Frank EO

February 8, 2017

On Feb. 3, President Donald Trump signed an Executive Order aimed at easing Dodd-Frank regulations. The EO outlines a series of “Core Principles” to which federal agencies are directed to adhere when it comes to financial regulation, and requires a report from Treasury within 120 days on how current rules and policies operate in accordance to the core principles.

The principles as outlined in the EO are:

  • Empower Americans to make independent financial decisions and informed choices in the marketplace, save for retirement, and build individual wealth;
  • Prevent taxpayer-funded bailouts;
  • Foster economic growth and vibrant financial markets through more rigorous regulatory impact analysis that addresses systemic risk and market failures, such as moral hazard and information asymmetry;
  • Enable American companies to be competitive with foreign firms in domestic and foreign markets;
  • Advance American interests in international financial regulatory negotiations and meetings;
  • Make regulation efficient, effective, and appropriately tailored; and
  • Restore public accountability within Federal financial regulatory agencies and rationalize the Federal financial regulatory framework.

While the EO doesn’t make any immediate changes to Dodd-Frank, it does echo the Administration’s ongoing goal of easing the federal regulatory burden on business. Ultimately, any meaningful action to repeal or reform Dodd-Frank requires Congressional action—something House Republicans still have not coalesced around, and when they do, it is sure to face significant opposition from Democrats in both chambers.

Click here to read the full EO.