The Trump administration has just released its view on how to reshape the financial system. Over the last several months there has been a lot of statements, rumor, and speculation about Trump’s plans, but they became more clear today. The guiding principle of the plan to is roll back many Obama-era rules, as Trump’s team feels they are too onerous. This will have wide-ranging implications for everything from mortgage lending to small bank regulation. Surprisingly, the White House supports the Volcker Rule. The report is seen as a roadmap (not a fixed plan) and the administration says it is primarily focused on the rule changes it can make without Congressional approval.
FINSUM: Unfortunately, Trump seems to be getting into the same position as Obama did—a bad relationship with Congress where he has to try to over-exert his executive power to get anything done. It did not work well for his predecessor, so we hope Trump can reverse this path.