Tags: Donald Trump | Financial Markets | barney frank | trump | cant | repeal | dodd-frank

Dodd-Frank Architect Rips Trump's Attempt to Undo Law

Dodd-Frank Architect Rips Trump's Attempt to Undo Law

 President Trump sign and Executive Order to review the Dodd-Frank regulations.  (Aude Guerrucci-Pool/Getty Images)

By    |   Sunday, 05 February 2017 09:20 AM

Former Rep. Barney Frank, D-Mass., ripped President Donald Trump's executive order on the Dodd-Frank bank restrictions Sunday, calling the order unnecessary — "stronger on the rhetoric than the specifics" — and any move to repeal the law in the Senate is futile and, frankly, dangerous.

"Much of that law is popular," Frank, after which former President Barack Obama's bank regulation law is named, told "The Cats Roundtable" host John Catsimatidis on New York's AM 970. 

"The executive order that the president offered with a lot of hype has no specifics. In fact, it doesn't do anything."

Frank, the former House Financial Services Committee chair, explained the order merely directs the Treasury secretary to produce a report on rolling back the Dodd-Frank regulations.

"Which could have been done with a phone call and without all the hoopla," Frank told Catsimatidis.

Frank added Trump will not be able to get enough support to remove Dodd-Frank, because "this is a law that is very specific," and Trump's current plan has no specifics to remove a law he does not completely understand.

"We expect to be cutting a lot out of Dodd-Frank because, frankly, I have so many people, friends of mine, who have nice businesses who can't borrow money," Trump said, per The Hill.  "They just can't get any money because the banks just won't let them borrow, because of the rules and regulations in Dodd-Frank."

Frank dunked that claim, saying the only specific piece of the Dodd-Frank controls which restrict borrowing is how it keeps people with too little income from taking out loans they cannot afford to pay back — not businesses with viable income.

"Other than that, there are no restrictions on lending in this bill," Frank told the radio show. "There are restrictions on the manipulation of derivatives of complex financial instruments like the ones AIG used that got people into serious trouble.

"What I'm afraid of is that we are going to get back to the period when large financial institutions, to make some short-term money, get themselves into situations where they won't be able to pay off their debt, and we will get back into a crisis."

The Dodd-Frank move by Trump might be futile, because he cannot remove it via executive order and undoing it in Congress does not look possible, Frank said.

"I do not think he's going to get 60 senators to vote to get rid of all this," Frank said. "So, what you then have, I believe, is he's going to appoint people who won't enforce the law."

Trump is facing obstruction on more than just the attempt to tear up Dodd-Frank. The confirmation of his Treasury Secretary-nominee Steven Mnuchin — the man who will be put to work against the bank regulations — is still be hung up by Democrats in Congress. 

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Former Rep. Barney Frank, D-Mass., ripped President Donald Trump's executive order on the Dodd-Frank bank restrictions Sunday, calling the order unnecessary - stronger on the rhetoric than the specifics - and any move to repeal the law in the Senate is futile and,...
barney frank, trump, cant, repeal, dodd-frank, banks laws
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2017-20-05
Sunday, 05 February 2017 09:20 AM
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