President-elect Donald Trump’s nominee for Treasury Secretary, Steven Mnuchin, appeared on CNBC’s “Squawk Box,” Wednesday and made it clear that the Dodd-Frank financial legislation will be targeted as part of their effort to boost economic growth, says Politico.
“The number one problem with Dodd-Frank is it’s way too complicated and it cuts back lending, so we want to strip back parts of Dodd-Frank that prevent banks from lending and that will be the number one priority on the regulatory side,” Mnuchin, a long-time Goldman Sachs banker, told CNBC. “The number one priority is going to be make sure that banks lend.”
“We have actually been bankers,” Mnuchin said, in reference to both himself and Wilbur Ross, who Trump chose to head up the Commerce Department.
“We’ve been in the business of regional banking and we understand what it is to make loans and that’s the engine of growth to small and medium sized business,” Mnuchin added.
Dodd-Frank, passed in the wake of the financial crisis and aimed at preventing some of the practices th[at] precipitated it, has long been a target for Republicans, who say the strict regulations on financial institutions have limited the flow of capital.
Mnuchin was less specific about other aspects of the law, like the Consumer Financial Protection Bureau that it created. Many Republicans loathe the agency. Mnuchin said only that the new administration is “going to take a look at all these things.”
Time will tell how things will shake out, but there have already been signs with Ford and Carrier both promising to keep jobs that were on the verge of going elsewhere in America, and Apple considering the idea of shifting some production to the Unied States – weeks before the start of Trump’s presidency.
So far, things look like they might be go in a strong direction forward under a Trump presidency.