By Isaac Cohen*
Two decisions on financial deregulation were approved, last week, as part of President Donald Trump’s process of implementing campaign promises. An executive order instructs the Treasury Secretary and other regulating agencies to prepare a proposal to revise the financial reform law, approved after the Great Recession, known as Dodd Frank. The other measure is a memorandum instructing the Labor Secretary to eliminate what is known as the “fiduciary rule,” approved during the previous administration and scheduled to enter into force next April. The “fiduciary rule” requires financial advisors to place their clients’ interests above other objectives, including their own commissions.
Both measures were presented at a meeting of President Trump with the executive heads of some of the largest banks and other giant financial institutions. Also, the announcement was greeted in the markets by a sharp increase in financial stocks. One of the reasons for this positive response from the financial sector is because in charge of executing both of these measures is one of their own, the new head of the White House National Economic Council and former President of Goldman Sachs Gary Cohn. Together with two other top members of President Trump’s team, Stephen K. Bannon, the President’s Chief Strategist and Steven Mnuchin nominated as Treasury Secretary, all three are former Goldman Sachs executives.
*International analyst and consultant. Commentator on economic and financial issues for CNN en Español TV and radio, UNIVISION, TELEMUNDO and other media. Former Director, UNECLAC Washington.
