President Donald Trump signed one executive order and two presidential memoranda on Friday, affirming once again that he plans to roll back many of the regulations put in place in the aftermath of the financial crisis, an article in USA Today by Gregory Korte stated.
Unlike a broader past executive order designed to roll back the Dodd-Frank Wall Street Reform Act, the landmark legislation passed in wake of the financial crisis, Friday’s executive memorandum focused on the orderly liquidation authority part of Dodd-Frank.
From the USA Today piece:
Direct the Treasury Secretary not to use orderly liquidation authority to bail out insolvent financial institutions, reigniting the debate over a key provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Critics have said that provision could actually allow banks to take more risks than they ordinarily would, and Trump wants to re-examine whether court-supervised bankruptcy would be a better way to wind down failing banks.
“It doesn’t sound like much, but it is,” Trump said on signing the directive. “That’s a biggie.”
Trump also signed another memorandum to review the process for the Financial Stability Oversight Council to designate non-bank financial institutions like insurance companies as “systemically important” to the financial system, the article stated.
According to the article, the only executive order Trump signed on Friday dealt with reviewing significant tax regulations issued in 2016 and 2017 that are overly complex and “impose an undue financial burden” on taxpayers.
As it stands, only the executive order is available on the White House website. The article will be updated once the memoranda are available.