THE ENTERPRISE PROCUREMENT GROUP UPDATE | UNCERTAINTY SURROUNDING DODD-FRANK AND OTHER REGULATIONS
An Enterprise Procurement Group Alert
Many regulations have come under President Donald Trump’s scrutiny in the first days of his presidency, and the Dodd-Frank Wall Street Reform and Consumer Protection Act is no exception.
On February 3, 2017, President Trump ordered, by way of an executive order, the Secretary of Treasury to examine whether the United States Government’s rules and regulations promote or inhibit the core principles cited in the Order, which notably include “empower(ing) Americans to make independent financial decisions,” and “foster(ing) economic growth and vibrant financial markets.” The Secretary of Treasury has 120 days to report to President Trump the findings.
On February 24, 2017, President Trump signed an additional executive order aimed at repealing or simplifying federal regulations. The order directs each federal agency to establish a regulatory reform task force to ensure every agency has a team to research all regulations and take aim at those deemed burdensome to the U.S. economy. Each task force will make recommendations on which regulations to repeal or simplify.
While the orders do not state that an unwinding or repeal of any specific regulations, including Dodd-Frank, is imminent or intended, President Trump has publicly stated his interest in de-regulation and, specifically, deconstructing barriers that prevent economic growth or companies from borrowing money. While de-regulation is likely to be seen as a positive for U.S. companies, the complexity Dodd-Frank and other regulations are certain to create ambiguity and uncertainty.