Bank of America CEO Brian Moynihan says that the big bank point of view of Dodd-Frank is that the law is fine; he explained that none of the big banks are trying to touch the law and it has made the financial system safer; small banks have been pushing to roll back some of the regulations associated with Dodd-Frank because they feel it is too burdensome; the interview at the Economic Club of Washington also touches on fintech, blockchain and other bank related issues. Source.
As former director Cordray left the CFPB last week he named an acting director to minimize operational disruption in his words; the White House on the other hand thinks he meant to provoke a response from the administration; the agency now is broiled in confusion over who is the true interim leader as the White House appointed their own interim leader; Mr. Cordray is working off of language in the Dodd-Frank Act to appoint a successor, while the White House is acting on the Federal Vacancies Reform Act that gives the President authority to appoint interim leaders; each leader will have a different mandate and the confusion will need to be cleared up soon. Source.
Representative Patrick McHenry says Dodd-Frank reform is not likely to make it to the House of Representatives until June or July; he is confident in major changes for the regulation from the House of Representatives however he foresees opposition from Senate democrats; in an interview with WSJ Pro Financial Regulation he also provided his insight on a range of regulatory aspects which could be integrated into legislation in various ways. Source
While the recent revisions to the tax code were done along party lines, the newly proposed updates to Dodd-Frank have the backing of a bipartisan group of legislators; the bill is looking to target banks in the $50bn to $250bn range who many feel have been disproportionately effected by the 2010 Dodd-Frank law; changing the definition of the banks from systemically important financial institutions or SIFI’s will free up the banks from certain requirements; while their is optimism for a deal that crosses party lines, Congress has a ways to go as they look to get this done later in the month. Source.
President Trump is set to sign two executive actions on Friday that take aim at reversing the new financial regulations that were put in place as a result of the 2008 financial crisis; the executive actions will give the labor secretary power to rescind the fiduciary rule and ask the Treasury secretary and regulators to come up with a plan to replace Dodd-Frank; the fiduciary rule was set to go into effect in April and was meant to ensure advisors had their client's best interests at heart; Dodd-Frank was passed in 2010 and began implementation in 2012; the law was meant to limit the chance of another financial crisis like we saw in 2008; uncertainty exists with what will end up happening, but signals show that the fiduciary rule will be struck down and Dodd-Frank will be replaced. Source
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