President Donald Trump signed an executive order and two memoranda on Friday relating to the 2010 Dodd-Frank law, which he described as "damaging ... regulations that failed to hold Wall Street firms accountable," the Washington Examiner reported.
The Dodd-Frank law, signed under former President Barack Obama, was passed in response to the financial crisis of 2007-2008. It brought sweeping changes to financial regulations, affecting both financial regulatory agencies and nearly all parts of the U.S. financial services industry.
"They've done, really, in many cases, the opposite of what they were supposed to," Trump said. "These regulations enshrined too-big-to-fail and encourage risky behavior."
Trump signed the memos at the Treasury Department, but his administration has not released the overall strategy he envisions. The president has indicated he wants broad changes, pledging to give the law a "major haircut."
Treasury Secretary Steven Mnuchin, when talking with reporters on Friday, hinted at support for a replacement bill released this week by House Financial Services Committee Chairman Jeb Hensarling (R-Texas), stating, "We are supportive of him bringing forward this legislation."
Hensarling's bill offers a more conservative approach to reforms, but may lack support in the Senate. He issued a statement Friday in support of the documents Trump signed.
"He pledged to dismantle Dodd-Frank, and his actions today are another significant step towards ending the Dodd-Frank mistake that has given Washington bureaucrats more power to politically control our economy," Hensarling said.
The executive order Trump signed requires the Treasury Department to identify and lessen burdens from tax regulations handed down in 2016. The memos call for an examination of two specific areas of the Dodd-Frank law, according to the newspaper.
© 2017 Newsmax. All rights reserved.