After Trump's latest executive order, uncertain future ahead for financial oversight laws
President Trump signed an executive order Friday that will direct the Treasury secretary to review the 2010 Dodd-Frank financial oversight law, which reshaped financial regulation after the 2008-09 financial crisis.
Earlier this week, Mr. Trump referred to Dodd-Frank as a “disaster.” “We’re going to be doing a big number on Dodd-Frank,” Mr. Trump said to a group of small business owners.
Some of the regulations in Dodd-Frank are “consumer-focused,” and have nothing to do with the broader economy, says CBS News senior business analyst Jill Schlesinger.
“The most direct impact on our lives is that the Dodd-Frank act created the Consumer Financial Protection Bureau, the CFPB. And the CFPB was the first agency whose sole mission was to put consumers first and watch out for us,” Schlesinger says. “Now what they’ve done is they’ve helped transparency on credit card bills, they’ve gone after very scrupulous mortgage practices, student loan servicers, they’ve come under a lot of pressure, and they were looking to put some firm rules in place against payday lenders.”
Mr. Trump is also looking to make a change in the so-called “fiduciary standard,” which affects on how some people save for retirement. The Department of Labor was set to put in place a new rule in April that would force a financial advisor, salesperson and the company he or she works for to be mandated to disclose any conflict of interest that was existing.
Although the future of implementation of the fiduciary standard is still unclear, it’s likely that the rule won’t be put in place by April 10th, Schlesinger says.