Republican Donald Trump, having confounded political experts with his election as the nation’s 45th president Tuesday, has said he wants to repeal much of Dodd-Frank, but has provided scant details of the financial institution regulatory regime he favors.
Trump won the race with an anti-Washington message and has said that federal regulations have hampered an economic recovery.
Republicans also maintained their majorities in the House and Senate. However, they lack the 60-vote majority in the Senate that is often needed to pass contentious legislation.
During the campaign, Trump specifically singled out Dodd-Frank, saying that the law has made it impossible for bankers to loan money to businesses to create jobs.
House Republicans have proposed comprehensive legislation that would replace Dodd-Frank with a new regulatory regime. House Financial Services Chairman Jeb Hensarling (R-Texas) has met with Trump to discuss that plan. But Trump has not publicly endorsed that legislation, which also would decrease the powers of the CFPB and require agencies to provide regulatory relief for community banks and credit unions.
Trump pledged to issue a moratorium on new agency regulations that are not required by Congress or are needed for public safety, but did not discuss how that moratorium would affect financial institutions.
As president, he may not have the power to enforce that moratorium with an independent agency, such as the NCUA.
However, Trump is likely to have the opportunity to appoint two members to the NCUA board, so he will be able to leave his imprint on the agency.
But a federal appeals court recently found the organization of the CFPB is unconstitutional and placed the agency under the executive branch. The agency has not decided whether to appeal that ruling, but the court decision could have an impact on the CFPB’s power to issue regulations on its own.
Trump’s Democratic opponent, former Secretary of State Hillary Clinton had said she would veto any legislation that would weaken Dodd Frank.
