A clear sign that Trump will go after the crown jewel of Dodd-Frank
An announcement from the Trump transition team Tuesday contained a clear sign that the new administration will seek to crimp the powers of the super-group of financial regulators set up by President Obama‘s financal reform law.
The transition team said that the team preparing for Trump to take over the Financial Stability Oversight Council would include Alex Pollock, a think tank expert who has been a vocal and prolific critic of the council since it was created.
Pollock, an analyst at the right-of-center R Street Institute, has dubbed the council a “Leviathan” and has expressed support for Republican legislation that would overhaul the group and pare back its broad powers.
The council comprises the heads of all the major financial regulatory agencies and is headed by the treasury secretary. Its job is to identify threats to the U.S. financial system, wherever they may be found. It has the authority to decide that any firm constitutes a potential risk to the safety of the financial system and to subject that firm to regulation as if it were a megabank.