When taking the White House, President Donald Trump vowed to do a “big number on Dodd-Frank,” the sweeping banking legislation put in place by the administration of President Barack Obama in response to the 2008 financial crisis. President Trump called Dodd-Frank “a disaster” that has impeded growth by making it harder for banks to lend to consumers and small businesses.
So what is the Dodd-Frank Act? It was a response by the Congress to the 2007-2008 financial crisis which resulted in the largest bailout in banking history. The banks in collusion with the Federal Reserve made the American public pay for the misconduct and greed of the investment and commercial banks. The trillions of dollars that were needed for the bailout were just printed, no backing, no gold standard – in essence, it was a counterfeit operation and you are still feeling its effects, primarily through the devaluation of the dollar. The U.S. dollar is no longer a valued currency. Russia, China, and IMF are calling for a new global currency, the Yuan being a good possibility.
To add insult to injury, the government declared most of the banks that stood in line for the free giveaway as “too big to fail.” There were literally no CEOs, bank presidents or trustees that were ever prosecuted or sent to jail.
Whatever the Dodd-Frank Act actually did to prevent future financial disasters is questionable but it at least established some regulatory oversight mechanisms that would make it difficult for the large banks to abuse their lending practices.
As far as I’m concerned, whatever the Congress and Executive branch enact with regard to the deficit, the Federal Reserve, and bank regulation is merely another loop hole for the robber banks, which are totally in control our system of governance. For Trump to gut Dodd-Frank or rescind it, is not a viable solution, it is just another con to keep the banking elite in a lifestyle of excess, luxury, and gluttony. Deregulation is a not a good thing, it is the “trickle down” theory disguised as a free market economy.