Those who remember the Great Recession of 2008 (quite a hefty economic collapse second only to the Great Depression) will recognize names like the Consumer Financial Protection Bureau, or CFPB, and the Dodd-Frank Wall Street Reform and Consumer Protection Act.
In general, both the CFPB and Dodd-Frank were lawmakers’ response to the recession, an attempt to bring about greater reform and regulation to the financial industry, to lessen the effects of the recession, and to prevent the economy from getting worse.
Trump’s going to ‘do a number’ on Dodd-Frank
But the Trump administration seems to have a short memory. Or perhaps memory is just fine – maybe Trump weathered the recession well, and bought cheap in a down market. That’s smart business. After all, it’s hardly reasonable to assume that Trump worried that much about debt and decreased earnings (or outright job loss) during that time, as compared to the average American.
At any rate, President Trump doesn’t like Dodd-Frank, and he plans to do something about it. “Regulation has actually been horrible for big business,” Trump said, as the Hill reports. “But it’s been worse for small business. Dodd-Frank is a disaster.”
What’s next if the ‘disaster’ is ultimately dismantled?
There are parts of Dodd-Frank that could likely be improved, while others perhaps thrown away, but some things never change: In general, the financial industry seems to agree with Trump that Dodd-Frank is a disaster (go figure), whereas supporters praise a number of its provisions, such as the CFPB, which became the first federal agency of its kind with authority to police the financial industry on behalf of American consumers.
The question, then, is what’s next for financial reform, and for the economy in general, when a lack of financial regulation is what many folks believe got us into the Great Recession in the first place.