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Globe says SEC is still enforcing Dodd-Frank

2017-02-15 08:19 ET - In the News

The Globe and Mail reports in its Wednesday edition that U.S. President Donald Trump's plan to dismantle crisis-era financial laws faces hurdles in Congress and from the regulatory process. The Globe's Rachelle Younglai writes that although Mr. Trump vowed to do a "big number" on Dodd-Frank, his administration cannot kill the law unilaterally. "The President can't change the law by fiat," said Rohit Chopra, senior fellow at the Consumer Federation of America. "The White House wants to move into less regulation of Wall Street; that will require action by the Congress." Congress must write a law to repeal Dodd-Frank and that legislation must win 60 votes in the Senate, where Republicans control only 52 of the seats. One proposal by congressional Republicans giving banks a choice between holding more capital or complying with Dodd-Frank would face similar problems in the Senate. One rule that banks want relaxed -- the Volcker rule banning proprietary trading -- took five agencies five years to implement. "You can't just say you don't like it and change it," said Dennis Kelleher at consumer advocate Better Markets Inc. So far, the President's nominees are known for their ties to Wall Street.

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