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President Trump’s Financial Reform Executive Order Provides Few Specifics

US President Donald Trump issued an executive order (EO) on February 3 that directs the secretary of the US Department of the Treasury and the heads of the major federal financial regulatory agencies to review “existing laws, treaties, regulations, guidance, reporting and recordkeeping requirements, and other government policies” for their consistency with a series of newly created “Core Principles” for the oversight and regulation of the financial sector, and to report back with their findings within 120 days.

Although not mentioned by name, the EO is aimed squarely at the Dodd-Frank Wall Street Accountability and Consumer Reform Act (Dodd-Frank Act)—as the president’s remarks at the signing event made clear.

The EO’s Core Principles set forth the principles with which the Trump administration intends to regulate the US financial system to, among other things, foster economic growth, improve the competitiveness of American businesses, and improve and rationalize the federal financial regulatory framework.

The actual language of the EO may disappoint some because it provides no guidance on specific Dodd-Frank Act or other financial regulatory actions that the new administration may have in mind. At the same time, the EO points the Treasury Department and financial regulatory agencies in a distinctly deregulatory direction as they undertake their review—which should come as no surprise given the president’s repeated references to the Dodd-Frank Act as a “disaster.”

We may have to wait awhile to see the specifics of the administration’s Dodd-Frank Act reform initiatives. In the meantime, the Republican-controlled Congress may move soon to push the Dodd-Frank reform discussion forward; House GOP leaders have indicated a desire to consider and mark up the Financial Choice Act (the Dodd-Frank Act reform legislation that was introduced but died in the last Congress), possibly as soon as later this month.

Copyright © 2022 by Morgan, Lewis & Bockius LLP. All Rights Reserved.National Law Review, Volume VII, Number 41
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About this Author

Charles Horn, financial services attorney, Morgan Lewis
Partner

Charles M. Horn is a partner in Morgan Lewis's Investment Management and Securities Industry Practice. Mr. Horn focuses his practice on regulatory and transactional matters, primarily in the areas of banking and financial services. He works on behalf of domestic and global financial institutions of all sizes on regulatory, supervisory, enforcement and compliance matters before all major federal financial institutions regulatory agencies, and leading state financial regulatory agencies.

202-739-5951
Michael Philipp, Morgan Lewis, Securities Attorney
Partner

Michael M. Philipp counsels financial services clients in futures and securities transactions. He also advises them in derivatives regulation, legislation, compliance, and enforcement matters. United States and foreign exchanges and clearing organizations, banks, investment managers, proprietary trading firms, brokerage firms, and end users turn to Michael for guidance in connection with exchange-traded and over-the-counter derivative instruments. He also represents foreign exchanges and clearinghouses in their US offerings of futures and equity options products and...

312.324.1905
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