Banks have led the FTSE 100 higher on reports US president Donald Trump will today order a sweeping review of the US Dodd-Frank laws imposed on lenders in response to the financial crisis.
"During the campaign, I am fairly certain candidate Trump didn't say he supported fewer consumer protections, however he did make clear that changes were needed to Dodd-Frank and his recent comments signal that it's time for a common-sense approach to regulation", Montgomery said. It will not take effect immediately and awaits Senate confirmation of Trump's Treasury Secretary nominee Steve Mnuchin. Since it was proposed by the Obama administration in 2015, the rule termination has been the target of broker-dealers and other financial advisers.
Some companies that do not act as fiduciaries now have been planning to move in that direction regardless of the Department of Labor's rule. Earlier this week Trump promised to do a "big number" on the Dodd-Frank Act during a meeting with business owners, claiming that the law had damaged the "entrepreneurial spirit" of the USA.
White House National Economic Council Director Gary Cohn, Goldman Sachs' former president and chief operating officer, said the executive order is part of a plan to dismantle much of the regulatory system put in place following the financial crisis.
Cohn argued regulations are "the biggest hindrance to job creation" and have a negative impact on banks' lending practices.
"The Wall Street bankers and lobbyists whose greed and recklessness almost destroyed this country may be toasting each other with champagne, but the American people have not forgotten the 2008 financial crisis - and they will not forget what happened today".
Now advisors are held to a much lower standard, known as "suitability" - meaning that any investment that they suggest just has to be appropriate for a client, not necessarily what the person needs most.
Judge restricts Robin Thicke's contact with his son, ex-wife
In the 52-word document, Patton proceeds to detail the volatile encounters endured by the actions of Thicke. Patton also wrote that Julian's behavior changed when she asked him to tell her about the spankings.
But the Trump Administration is sure to get a pitched battle over the effort to roll back financial regulations from Democrats in Congress. Senator Elizabeth Warren of MA fired a warning shot on Friday, calling on Cohn to recuse himself from any decisions related to Goldman Sachs, citing the $284 million of stock and other securities the bank helped him unlock as part of Cohn's journey from Goldman Sachs to Washington.
They reported that US bank mergers increased to about $18 billion in 2016, the highest recorded level since 2009.
The Trump administration has argued Dodd-Frank has not achieved its objective and is an example of government over-reach. One Dodd-Frank provision ripe for Republican action is the "Volcker rule" that greatly restricts how banks can make bets with their own money. "This is a law that was passed by Congress and needs to be change by Congress". Dodd-Frank has been criticized for raising costs for both consumers and small business while undermining competition.
The rule was vacated in 2013 by a federal judge on the grounds it was too arbitrary. An SEC rule would apply to all investments, not just retirement accounts.
Describing it as an "anti-corruption rule", Sen. Sherrod Brown (D-Ohio), a member of the Banking Committee, said in a statement.
Under Dodd-Frank, the SEC has had authority to write a fiduciary rule since 2010, but has not acted.