Trump Adviser: Rollback of Dodd-Frank Will Free Up
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Posted On: 02/03/2017 4:36:34 PM
Trump Adviser: Rollback of Dodd-Frank Will Free Up Capital for Small Businesses
President Donald Trump is reportedly set to sign an executive action to roll back the 2010 Dodd-Frank legislation, which was enacted in response to the 2008 financial collapse.
Trump is expected to direct the Treasury secretary and financial regulators to come up with a plan to revise the Dodd-Frank rules.
On Fox Business Network this morning, White House economic adviser Gary Cohn said the order is aimed at freeing up capital for entrepreneurs and small businesses.
"Banks do not lend money to companies. Banks are forced to hoard capital and they can't take any risk. We need to get banks back in the lending business," said Cohn, who previously served as president of investment bank Goldman Sachs.
Maria Bartiromo weighed in this morning on "America's Newsroom," explaining that there has been a business "recession" in recent years because companies are "sitting on cash."
"They have not been increasing hiring [or] increasing investments," she said.
Bartiromo said the main criticism of the Dodd-Frank law was that it forced "small and mid-cap banks ... to hold capital" in the event there was another crash.
The Dodd-Frank bill, named for former Sen. Chris Dodd and former Rep. Barney Frank, was championed by Sen. Elizabeth Warren (D-MA).
In November, she vowed to fight any moves by the Trump administration to weaken the law, slamming President Trump for continuing a "revolving door" of former Wall Street bankers moving into the government.
Treasury Secretary nominee Steven Mnuchin is a hedge fund manager and former Goldman Sachs executive.
President Donald Trump is reportedly set to sign an executive action to roll back the 2010 Dodd-Frank legislation, which was enacted in response to the 2008 financial collapse.
Trump is expected to direct the Treasury secretary and financial regulators to come up with a plan to revise the Dodd-Frank rules.
On Fox Business Network this morning, White House economic adviser Gary Cohn said the order is aimed at freeing up capital for entrepreneurs and small businesses.
"Banks do not lend money to companies. Banks are forced to hoard capital and they can't take any risk. We need to get banks back in the lending business," said Cohn, who previously served as president of investment bank Goldman Sachs.
Maria Bartiromo weighed in this morning on "America's Newsroom," explaining that there has been a business "recession" in recent years because companies are "sitting on cash."
"They have not been increasing hiring [or] increasing investments," she said.
Bartiromo said the main criticism of the Dodd-Frank law was that it forced "small and mid-cap banks ... to hold capital" in the event there was another crash.
The Dodd-Frank bill, named for former Sen. Chris Dodd and former Rep. Barney Frank, was championed by Sen. Elizabeth Warren (D-MA).
In November, she vowed to fight any moves by the Trump administration to weaken the law, slamming President Trump for continuing a "revolving door" of former Wall Street bankers moving into the government.
Treasury Secretary nominee Steven Mnuchin is a hedge fund manager and former Goldman Sachs executive.
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