On February 3, President Trump signed executive actions rolling back financial regulations that were put into place after Congress passed the Dodd-Frank banking reform bill in 2010.
That bill didn't include all of the measures some believe are needed to rein in bank fraud and mismanagement. But, as Federal Reserve Chair Janet Yellen notes, it represents an improvement over the status quo that led to the 2007-08 financial crisis. The Dodd-Frank provisions endangered by Trump's announcement are designed to increase financial stability, reduce risky bank behavior and limit predatory mortgage lending.
Trump also moved to end something called the "fiduciary rule," a technical-sounding name for something that serves a relatively simple goal: to prevent people who give advice about retirement accounts from having hidden financial incentives that conflict with their clients' interests.
Bad Company
Trump didn't just declare war on these fundamental financial protections. He also showed the public where his loyalties lay. As he announced the gutting of controls on big bankers, Trump gave a special shout-out to one of the worst of them: Jamie Dimon. As CEO of JPMorgan Chase, Dimon has led one of the most criminally inclined institutions on Wall Street. The long list of documented crimes committed under Dimon's leadership includes money laundering for drug cartels, foreclosure fraud, and violation of sanctions against Cuba, Iran and Sudan.
Trump chose Gary Cohn, the new head of his Council of Economic Advisers, to announce the change in the fiduciary rule. Cohn is the former COO of Goldman Sachs, and one of many Trump appointees from that Wall Street powerhouse. When it comes to criminal behavior, Goldman is arguably JP Morgan's only challenger for the title of "most corrupt" investment bank.
With these actions, Trump has let the American people know whose side he's on, and it's not theirs. Millions of people are now more likely to be robbed of their savings, their homes and their retirement security.
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