American Banker asks the question of what will be the immediate impact of President Trump’s executive order calling for a review of financial regulatory policy, especially the 2010 Dodd-Frank Act.
The magazine’s conclusion is that the impact likely will be small in the short term.
In the article, Joe Adler writes that the order was framed as “core principles” rather than any immediate policy change.
“The president has very little direct authority to change Dodd-Frank, repeal the fiduciary duty rule or revamp Fannie Mae and Freddie Mac. As a result, his orders will urge other parts of the government to make changes,” wrote Jaret Seiberg, an analyst at Cowen Group. “With the possible exception of the fiduciary duty rule, actual changes for the banks are unlikely to occur quickly.”
As for the long-term impact, Adler writes that a complete unwind of the 2010 law is unlikely in the current political environment in Washington.