Yesterday, President Donald Trump signed an executive order that is aimed at reducing regulation across all industries. Part of his push, which has been framed to help small and large companies alike, requires departments and agencies to “identify at least two existing regulations to be repealed” for every new one proposed.
When it comes to the financial services industry specifically, President Trump commented on Dodd-Frank, an act that was passed in 2010 in response to the financial crisis of 2008.
“We’re going to be doing a big number on Dodd-Frank,” Trump said. He went on to say the law is a “disaster” and that “it’s virtually impossible to expand your existing business.”
Recently, bank executives have shared their thoughts on the possibility of getting rid of Dodd-Frank. Morgan Stanley CEO James Gorman, for example, believes Dodd-Frank should not be eliminated. Instead, he believes elements of the legislation should be curtailed.
One comment Mr. Gorman made that most business leaders would agree with was that we should “stop moving the ball” and “absorb the regulations we got.” He elaborated by saying that we should take away the things that are actually hurting growth.
