Trump vows ‘major haircut’ for Dodd-Frank

Rolling back Dodd-Frank is still very much on Donald Trump’s to-do list.

The US president said Tuesday morning at a town hall with corporate executives that his administration is planning to do a “major haircut” on Dodd-Frank, a massive overhaul of financial regulations in the wake of the 2008 crisis. “The regulators are running the banks,” he added.

It’s a reminder to banks that undoing major portions of Dodd-Frank is still squarely on the president’s agenda, even as the administration regroups following the initial defeat of healthcare legislation. Weeks after taking office, Mr Trump signed an executive order directing the review of Dodd-Frank rules, which include prohibitions on financial institutions trading for their own benefit.

The prospect of looser regulation are among the business-friendly campaign pledges from Mr Trump that have helped propel markets in the wake of his election.