President Donald Trump signed an executive order that rolled back some of the Dodd-Frank measures that regulated Wall Street because his friends “can’t borrow money” under the law.
“We expect to be cutting a lot out of Dodd-Frank because frankly, I have so many people, friends of mine that had nice businesses, they can’t borrow money,” Trump said, reports The New York Times. “They just can’t get any money because the banks just won’t let them borrow it because of the rules and regulations in Dodd-Frank.”
Gary Cohn, the White House National Economic Council director and a former Goldman Sachs COO, told The Wall Street Journal that Trump’s executive order helps big banks.
“Americans are going to have better choices and Americans are going to have better products because we’re not going to burden the banks with literally hundreds of billions of dollars of regulatory costs every year,” Cohn said.
Lisa Donner, executive director of Americans for Financial Reform, an advocacy group that supports Dodd-Frank, said Trump’s executive order will hurt Americans.
“The administration apparently plans to turn over financial regulation to Wall Street titan Goldman Sachs, and make it easier for them and other big banks like Wells Fargo to steal from their customers and destabilize the economy,” she told The New York Times.
Trump’s decision to roll back the Dodd-Frank regulations follows up on an idea he put forward during the 2016 presidential campaign. The regulations were put in place after the 2008 financial crisis in an effort to prevent a similar set of events in the future.
“Dodd-Frank has made it impossible for bankers to function,” Trump said in May 2016, according to Reuters. “It makes it very hard for bankers to loan money for people to create jobs, for people with businesses to create jobs. And that has to stop.”
Sources: The New York Times, Wall Street Journal via The Washington Post, Reuters via Fortune / Photo credit: Gage Skidmore/Flickr