“President-elect Donald Trump has started to translate some of his populist campaign rhetoric into policy statements, including the contention that Wall Street banks are still too big to fail and that one of his priorities is scrapping the Dodd-Frank Act.
After the government’s answer to the 2008 financial crisis, the “big banks got bigger while community financial institutions have disappeared at a rate of one per day, and taxpayers remain on the hook for bailing out financial firms deemed ‘too big to fail,”’ says a statement posted on Trump’s official transition website. “The Financial Services Policy Implementation team will be working to dismantle the Dodd-Frank Act and replace it with new policies to encourage economic growth and job creation.”
The site outlines several policies that will be familiar to those who followed his remarks during the campaign, including his intention to declare a temporary moratorium on new regulations so they can be reviewed. The site called regulatory reform “a cornerstone of the Trump Administration.” It also broadly addressed a tax-code overhaul, saying the administration’s plan “can be summarized as lower, simpler, fairer, and pro-growth.”
Trump’s plans for financial regulations could pull from a plan proposed earlier this year by House Financial Services Committee Chairman Jeb Hensarling. Hensarling’s bill — dubbed the Choice Act — similarly calls for holding Wall Street and Washington accountable. The legislation rips up core parts of Dodd-Frank, including a provision that allows the government to dismantle failed banks. Hensarling also wants to do away with the Volcker Rule ban on banks making certain investments, and his bill would weaken the reach of the Consumer Financial Protection Bureau”.