Trump promises ‘major haircut’ on Dodd-Frank

by Ryan Smith05 Apr 2017

The controversial Dodd-Frank Act is going to get a “major haircut,” President Donald Trump promised business leaders Tuesday.

During a meeting with the CEOs of some of the nation’s biggest companies, Trump said that some current regulations were making it impossible for businesses to function. He told the assembled executives that he planned on “destroying” not only Obama-era regulations, but regulations enacted as far back as the beginning of the Clinton administration.

“We are absolutely destroying these horrible regulations that have been placed over your heads, not over the last eight years – over the last 20 and 25 years,” Trump said.

Trump particularly singled out the Dodd-Frank act, saying it was stifling lending.

“Dodd-Frank is an example of what we’re working on and we’re working on it right now,” he said. “…We’re going to be doing things that are going to be very good for the banking industry so the banks can lend money to people that need it.”

Trump said that under Dodd-Frank, the CEOs of financial institutions weren’t really the ones in charge of their companies.

“Really, the head people, they’re petrified of the regulators. They’re petrified,” Trump said. “They can’t move. The regulators are running the banks.”

However, Trump said he wasn’t pushing for a total repeal of the law. Rather, he said, he wanted to give it a “haircut.”

 “So we’re going to do a very major haircut on Dodd-Frank,” he said. “We want strong restrictions. We want strong regulation, but not regulation that makes it impossible for banks to lend to people that are going to create jobs.”The president may be in for a tough sled in gutting the regulation, however; congressional Democrats have already vowed to fight any attempt to weaken the act.


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COMMENTS

  • by | 4/5/2017 12:16:23 PM

    People need to be working on ALL ends of the business, some time people are making decisions as it is in numerous fields of which they have never been the participant or recipient in and have NO clue as to ALL aspects of the field they are affecting the American lives. Maybe it is time ALL parties get together (that will be a first) as the new regulations that took place are not exactly working to the benefit of all parties (delayed closings, the buyer not being able to set up a closing date of their household deliveries etc) and making home ownership MUCH harder than out should be with time restrictions that are absurd! Talk to real estate agents, mortgage companies trying to obtain the mortgages and title companies trying toward under the 3 DAY Ruleish - just maybe something can be resolved that makes sense to the consumer and regulators.
    Real Estate Agent for YEARS! DH

  • by GBF | 4/5/2017 12:31:21 PM

    Perhaps it's time to make the banks adhere to the same disclosure and continuing education rules as independent mortgage brokers. Especially frustrating is having to deal with Appraisal Management Companies, who apparently exist only to slow down the process while presenting the appearance of objectivity. If you really want objectivity, there's a much easier way to get it; choose any appraiser you want, and make every appraisal subject to review by an independent panel of appraisers in each county. That way you're certain the value is accurate; you can actually talk to an appraiser, and the lenders won't end up owning and controlling the appraisal - the client will. After all, they paid for it

  • by CA lender | 4/5/2017 12:48:02 PM

    I am certain any "haircut", "deregulation", "Improvement", etc. will greatly benefit big banks bottom line and do NOTHING to alleviate the stupidities facing borrowers. AMC's will stay in place and the 3 day CD requirements will stay in place. Private investors who often (although not always) played a helpful niche role in allowing challenged buyers to find financing for owner-occupied dwellings will continue to avoid such mortgages due to the potentially onerous consequences. Our government has "helped" countless borrowers into delays, complications, irritations and additional costs and right out of purchasing a home.

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