The Dodd-Frank Wall Street Reform and Consumer Protection Act was put in place after the Great Recession that began in 2008. The idea was to curb the wild and wooly ways of big banks that helped steer the financial system into the mortgage lending crisis and a near Depression. Many Americans still have not recouped their savings.
President Trump ran, of course, on a platform claiming the country was in a free-fall, that the financial system was a “disaster” and that he, by golly, could hold Wall Street accountable.
Like so many of the president’s campaign claims, those were based in his own imagination. In fact, under President Obama, the financial markets bounced back big-time (under Dodd-Frank, by the way), the auto industry rebounded and business has boomed. But a doomsday scenario works better in the presidential plot line.
So Trump is moving to “dismantle” Dodd-Frank, he says, adding, “because frankly, I have so many people, friends of mine, that have nice businesses and they can’t borrow money.”
Good grief. At least Trump committed a little inadvertent honesty.
But mainstream big banks aren’t especially enthusiastic about blowing up Dodd-Frank, which can help to protect consumers and keep the playing field level — and calm.