DD Support Board and Research Team

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You can see this in the way administration officials are talking about their approach. President Trump’s National Economic Council director, Gary D. Cohn, has said that banks have too high capital requirements and are being forced to do too much to prepare for failure, and has hinted that future executive orders would target these reforms. He justifies this argument by describing his recent experiences as president of Goldman Sachs. It’s no wonder financial stocks have been soaring since Mr. Trump was elected. Voters who hoped he would “drain the swamp” and upset the elite are in for a big surprise.

There will also be a lot of discussion by the Trump administration about Dodd-Frank failing to end “too big to fail” and about credit drying up for businesses. This is impossible to find in the data. Surveys of small businesses and loan officers don’t find that Dodd-Frank has killed access to credit, and we don’t see it in the aggregate lending data either.

With the help of Dodd-Frank, there’s been significant progress made toward ensuring that a systemically risky financial institution can be wound down. Mr. Trump could have taken actions to push reform further.

It’s clear with his orders that he won’t take that choice.

https://www.nytimes.com/2017/02/04/opinion/trump-picks-wall-street-over-main-street.html