Treasury Choice Steven Mnuchin Vows to 'Strip Back' Dodd-Frank
November 30 2016 - 9:20AM
Dow Jones News
WASHINGTON—Donald Trump's choice for Treasury secretary said
Wednesday that he would focus on rolling back parts of the landmark
2010 Dodd-Frank financial overhaul law enacted in the wake of the
financial crisis.
"The number one problem with Dodd-Frank is that it's way too
complicated and cuts back lending," hedge-fund manager Steven
Mnuchin told CNBC in his first public comments since being tapped
by the president-elect to head his economic team.
"So we want to strip back parts of Dodd-Frank and that will be
the number one priority on the regulatory side," Mr. Mnuchin said,
according to a rush transcript of the interview.
Mr. Mnuchin's comments are consistent with those made by Mr.
Trump and other advisers. But they are significant since he himself
has said little on publicly about policy matters, and his Wednesday
remarks offer a fresh window into his thinking and priorities.
Mr. Mnuchin, a former Goldman Sachs Group Inc. executive,
singled out the Volcker Rule provision in the law—named after
former Federal Reserve Chairman Paul Volcker—which is aimed at
trying to stop banks from betting with deposit-insured funds.
Goldman and other Wall Street firms have complained that the rule
is too opaque and complex.
"The number one problem with the Volcker rule is it's way too
complicated and people don't know how to interpret it," Mr. Mnuchin
said. "So we're going to look at what do with it, as we are with
all of Dodd-Frank."
In the interview, Mr. Mnuchin alluded to his crisis-era foray
into the banking industry, when he was part of a group that bought
the failed IndyMac Bank from the government. He became chairman of
the renamed OneWest Bank in Los Angeles, which eventually was sold
to CIT Group Inc. He currently sits on CIT's board.
"We've been in the business of regional banking and we
understand what it is to make loans," he said. "That's the engine
of growth to small- and medium-size businesses."
Regional banks in particular have been lobbying for relief from
Dodd-Frank.
Write to Jacob M. Schlesinger at jacob.schlesinger@wsj.com
(END) Dow Jones Newswires
November 30, 2016 09:05 ET (14:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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