Whether it is due to the passage of time since the Financial Crisis, short memories, or the White House’s deregulatory zeal, major components of the Dodd-Frank Act are being modified, redefined, and weakened. Efforts are underway, and gaining traction, for example, to scale back the scope and reach of the Volcker Rule. The Consumer Financial Protection Bureau is being rebooted with more of a pro-business character.
Another longstanding target for critics is the Financial Stability Oversight Council. It took President Trump only two weeks in office before threatening an overhaul or dismantling of the FSOC, ultimately decreeing an end to the Council’s process for designating non-banks as “systemically important financial institutions (SIFIs).” Legislative efforts and regulator-led initiatives have come and gone with varying degrees of success.
