Ask big bank CEOs about Dodd-Frank these days and you get some variation on a common theme: We don't want to throw the whole thing out, but maybe uh scale back capital and liquidity requirements, and, well, those stress tests are a bit of a bummer, too. But like, no need to torpedo the whole post-crisis regulatory framework or anything.
It's not clear Donald Trump got that message. On Monday, the president told reporters he hoped to “do a big number” on Dodd-Frank. That big number, it turns out, is the number two, which is how many regulations must be eliminated for every rule that is introduced, according to the executive order Trump signed Monday.
From the New York Times:
“Dodd-Frank is a disaster,” the president said during a 10-minute session with reporters as he signed an executive order slashing government regulations.
“We’re going to be doing a big number on Dodd-Frank,” Mr. Trump said. “The American dream is back.”
How, exactly, Trump's team plans to water down the bill remains a matter of speculation. Treasury Secretary Steve Mnuchin has signaled reluctance to flush the Volcker Rule down the drain, though he has otherwise promised to “kill” parts of the law. Trump, meanwhile, seems content to dump it all.