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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsDonald Trump Plans to Undo Dodd-Frank Law, Fiduciary Rule
https://www.wsj.com/articles/trump-moves-to-undo-dodd-frank-law-1486101602White House adviser Gary Cohn says banks burdened by rules added after financial crisis
WASHINGTONPresident Donald Trump on Friday plans to sign an executive action that establishes a framework for scaling back the 2010 Dodd-Frank financial-overhaul law, part of a sweeping plan to dismantle much of the regulatory system put in place after the financial crisis.
Mr. Trump also plans another executive action aimed at rolling back a controversial regulation scheduled to take effect in April that critics have said would upend the retirement-account advisory business.
Americans are going to have better choices and Americans are going to have better products because were not going to burden the banks with literally hundreds of billions of dollars of regulatory costs every year, White House National Economic Council Director Gary Cohn said in an interview with The Wall Street Journal. The banks are going to be able to price product more efficiently and more effectively to consumers.
But Hillary was the Wall Street candidate.
Sid
BeyondGeography
(39,380 posts)and a permanent entry in the "don't" side of the future D candidates handbook. As in, how not to fatally undermine yourself when you have the high ground.
SidDithers
(44,228 posts)Sid
BeyondGeography
(39,380 posts)BeekeeperInVermont
(76 posts)And, as there's no longer anyone in charge with any concern about ordinary people, it will not be addressed as vigorously as the Obama administration did.
Yesterday there was an interview with Larry Summers (yeah, I know) on NPR's "Here and Now", about what he calls the market's 'sugar high' following the election and the dangers he sees ahead of us. Repealing Dodd-Frank can only make things worse.
Link: [link:http://www.wbur.org/hereandnow/2017/02/02/larry-summers-trump-market-reactions|
sunonmars
(8,656 posts)during the campaighn, this is all about basically screwing everyone and turning this into an oligarch country.
SamKnause
(13,110 posts)Republicans are EVIL !!!!!!!!!!!!!!!!!!!
Slimy Jamie Dimon can't get a loan.
EVIL fuckers !!!!!!!!!!!!!!!
R B Garr
(16,979 posts)the finger. He is doing the exact opposite of anything on their bandwagon, which just shows the gullibility.
sunonmars
(8,656 posts)sunonmars
(8,656 posts)Anyone surprised, This cabinet is going to rape this country.
Willie Pep
(841 posts)I wonder how the people who thought Trump was going to stick it to the wealthy establishment will receive this.
sunonmars
(8,656 posts)Cohn is planning to weaken the fiduciary rule, which he believes robs Americans of their freedom to hire financial advisers who might want to rip them off. This is like putting only healthy food on the menu, he tells the Journal, because unhealthy food tastes good but you still shouldnt eat it because you might die younger.
Cohns metaphor is worth exploring. Healthy food, in Cohns example, is equivalent of investment advice thats good for the client. Unhealthy food is like investment advice thats bad for the client (but good for the adviser he has hired.) Why shouldnt people choose how much healthy versus unhealthy financial advice to hire? Well, the reason financial advisers are required to follow their clients fiduciary interests, rather than assuming that the logic of the free market will naturally produce optimal scrupulousness, is that investing is extremely complex. There is a huge asymmetry of information between professionals who work at investment firms and their customers. A customer at a restaurant might be able to eyeball the menu and guess that the spinach salad is healthier than the pizza, but a customer shopping for financial advisers is not going to know which ones will give them the best financial advice versus the ones who might might be trying to enrich themselves at the customers expense.
Cohn promises his plans to gut the fiduciary rule are just the beginning of Trumps offensive against Dodd-Frank. This is a table setter for a bunch of stuff that is coming, he promises the Journal. The items hes setting out on that table will probably be healthier for Goldman Sachs than for the country.
anarch
(6,535 posts)might was well finish the job that was started in 2008...the uber-wealthy need to consolidate power and resources, to the detriment of...well...everybody else, and this is the way to do it.
Republicans are traitors to humanity, and will be held accountable when the dust settles in a couple centuries. And if I were still alive then, I wouldn't feel sorry for them.