The current legislation of the Dodd-Frank Wall Street Reform and Consumer Protection Act consists of multi-layered regulations for financial stability of institutions, consumer protection, oversight protocols, and liquidation authorities (U.S. Securities and Exchange Commission, 2017). Embedded in this lengthy reform act are conditions for transfers of power and amendment rights that basically give the authorized entities the empowerment to shape certain attributes of the financial system if it is found necessary to assure that misconduct or criminal actions are not being utilized on unwary consumers.
The Dodd-Frank Act also retains authority over nonfinancial institutions, which is one of the main issues that have business owners in a frenzy to have portions of the Act abolished. In Section 172 of the Dodd-Frank Act this concept is realized through the Orderly Liquidation Purposes which specifies that nonfinancial institutions can be subject to examination by the authorized entities in the Dodd-Frank Act (U.S. Securites and Exchange Commission, 2017). In essence, nonfinancial institutions may be ordered to turn …show more content…
President Trump signed an executive order to reverse the fiduciary rule, which mandated brokers to put the interest of the investor first and not give advice that solely benefits the broker (Protess & Hirschfeld Davis, 2017). This maneuver could be considered a loosening of the shoe laces by President Trump in order to attempt to unlace the entire shoe. Additional executive orders to reverse specific legislation of the Dodd-Frank Act will continue to occur until all that is left is the bare bones of the Act, at which time President Trump will rebuild the regulations to new standards that may release both financial and nonfinancial institutions from most of the obligations of the Dodd-Frank
The Dodd-Frank Act also retains authority over nonfinancial institutions, which is one of the main issues that have business owners in a frenzy to have portions of the Act abolished. In Section 172 of the Dodd-Frank Act this concept is realized through the Orderly Liquidation Purposes which specifies that nonfinancial institutions can be subject to examination by the authorized entities in the Dodd-Frank Act (U.S. Securites and Exchange Commission, 2017). In essence, nonfinancial institutions may be ordered to turn …show more content…
President Trump signed an executive order to reverse the fiduciary rule, which mandated brokers to put the interest of the investor first and not give advice that solely benefits the broker (Protess & Hirschfeld Davis, 2017). This maneuver could be considered a loosening of the shoe laces by President Trump in order to attempt to unlace the entire shoe. Additional executive orders to reverse specific legislation of the Dodd-Frank Act will continue to occur until all that is left is the bare bones of the Act, at which time President Trump will rebuild the regulations to new standards that may release both financial and nonfinancial institutions from most of the obligations of the Dodd-Frank