Trump intends to revamp the Dodd-Frank Act written by Dem. Senator Chris Dodd and Rep. Barney Frank. The republicans feel that there are too many regulations in the 2300 page written law for Wall Street Reform.
On the contrary, Democrats feel that this legislation is basically the gatekeeper in an industry that took advantage of consumers and reduces the risks for Wall Street.
The proponents of Dodd-Frank promised that it would lift our economy. Yet, the big banks got bigger while small financial institutions have vanished at a rate of one per day. Taxpayers remain on the hook for bailing out financial firms deemed “too big to fail.”
Donald Trump will Revamp the Dodd Frank Act?
Donald Trump’s transition team is promising to “dismantle” the complex Dodd–Frank Wall Street Reform and Consumer Protection Act. It probably would not occur in the first 100 day rush, but Trump will revamp the Dodd Frank Act and may target some of the following efforts:
- Dismantle the “Volcker rule” which blocks banks from making risky-dicey investments that could raise profits, but would not benefit bank customers.
- Trump’s team is also targeting the Consumer Financial Protection Bureau (CFPB) that has imposed new regulations on foreclosure relief servicers, mortgage servicers, payday lenders, debt collectors, auto lenders and more.
- Under Trump’s jurisdiction, Congress will change the management structure of CFPB to move at a slower pace. CFPB management has swiftly acted in implementing non-compliant and violated laws by banks, mortgage lenders and the financial institutions for the benefit of consumers.
At this point, we will have to wait and see what the Trump administration will do with regards to protecting consumers against the big banks.
Will he do as he say and demand transparency from the banks and financial institutions and protect the little guy? Or, will we continue to see the same ol’ democracy that continues to commit fraud, predatory lending and illegal acts to harm the consumers?
I’m willing to give Trump a chance and see how he will turn our economy around. Let’s move forward and see how this will play out. What do you think?