US President Donald Trump signed two executive orders to start the process of undoing many of the reforms instituted by the Obama administration in the wake of the 2008 financial crisis that brought the global economy to the brink of collapse.
“Today we are signing core principles for regulating the United States financial system,” Trump said during the signing on Friday, which followed a White House meeting with corporate CEOs.
The President mandated a drastic revision of parts of the Dodd-Frank Act, the main piece of reform legislation aimed at averting a repeat of the financial meltdown that led to the worst economic slump since the Great Depression, Efe news reported.
“We expect to be cutting a lot out of Dodd-Frank because frankly, I have so many people, friends of mine that had nice businesses, they can’t borrow money,” Trump said in the session with his economic advisory council.
“They just can’t get any money because the banks just won’t let them borrow it because of the rules and regulations in Dodd-Frank,” the President said, offering no specifics to support the assertion.
Trump often criticized Wall Street during the presidential campaign, attacking Democratic opponent Hillary Clinton for her ties to investment bank Goldman Sachs.
Since the election, however, he has named veterans of Goldman Sachs to key positions in his administration.
The second order Trump signed on Friday puts at least a temporary stop to a rule imposed by the Labor Department under Barack Obama that requires brokers to put the best interests of clients first when making retirement and investment recommendations.
Major revisions of Dodd-Frank will require approval by Congress, where Trump’s Republicans control both houses.