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Trump signs financial services executive orders

Friday, April 21, 2017 - 01:37

U.S. President Donald Trump signs one executive order and two presidential memorandums regarding financial regulation and taxes at the Treasury Department. Rough Cut (no reporter narration).

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ROUGH CUT (NO REPORTER NARRATION) STORY: U.S. President Donald Trump ordered the Treasury Department on Friday (April 21) to examine two powers given to regulators to police large financial companies after the 2008 financial crisis, Treasury Secretary Steven Mnuchin said. In his first visit to the Treasury building, Trump signed two memos that analysts view as largely affirming existing priorities he has outlined. One will temporarily bar regulators from identifying new non-bank financial institutions as "systemically important financial institutions," or SIFIs, while also ordering a review of this process, Mnuchin said in a briefing with reporters. SIFIs face added regulatory oversight and must hold more capital as a buffer against losses. The other memo will put a temporary halt to the use of "orderly liquidation authority" to unwind troubled financial institutions unless the president directs it in an emergency. Trump will order a review of this as well, Mnuchin said. Trump has long said financial sector oversight could curb economic growth. While the two memos signal he is still interested, they overlap with an earlier executive order he signed in February directing a review of all financial rules. The impact of the memos may be limited. Mnuchin had previously said his team was already looking into both the SIFI designation process and the use of orderly liquidation. The Trump administration has been expected to reduce the number of companies subject to SIFI-level policing.

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Trump signs financial services executive orders

Friday, April 21, 2017 - 01:37