Dodd-Frank Criticism
As a candidate, Trump was highly critical of Dodd-Frank, saying its strictures have forced banks to cut back on lending. But he also praised Glass-Steagall, a nod to his populist, anti-Wall Street message.
Now in office, Trump and other administration officials have touted their support for a “21st century, modern Glass-Steagall.”
What that means, however, is anybody’s guess. None of Trump’s advisers have offered details on a plan and, in the Bloomberg News interview, the president was similarly vague.
“There are, you know, some people that want to go back to the old system, right?” he said. “So we’re going to look at that. We’re going to, we’re looking at it right now as we speak.”
No Action
Marcus Stanley, policy director at Americans for Financial Reform, said that he has a hard time taking Trump at his word, especially since he has populated his administration with finance executives.
“So far, Trump has just talked up Glass-Steagall without actually doing anything, which is what you’d expect from a guy who puts big banks in charge of policy,” said Stanley, whose group would like to see the law reinstated.
Financial firms don’t seem to be taking Trump’s threats at face value, either.
The large banks didn’t say much about re-instating Glass-Steagall in comments their trade associations have been submitting to the Treasury for its review of financial regulations. That process was triggered by an executive order Trump signed earlier this year, and the department is slated to issue a report in early June that lays out recommendations for eliminating rules.