President Donald Trump is mulling over whether to break up some of the largest U.S. banks. This can be made possible by keeping the consumer and investment banks separate through a Great Depression law.
In a statement made to Bloomberg News, Trump said that he’s looking at that issue at the moment. He also pointed out that there are some people that want to go back to the old system.
President Trump is a very frank critic of financial regulations that were approved after the 2008 financial crisis, saying they have stifled economic growth.
However, over the course of his presidential campaign, Trump endorsed the restoration version of the 1933 Glass-Steagall law that kept banks from offering both consumer lending and investment banking services. The law was repealed as part of the 1999 financial deregulation under then-President Bill Clinton.
As he was speaking to the Independent Community Bankers Association, President Donald Trump said that he will roll back regulations imposed on their industry after the nation's 2008 financial crisis. The bankers were wearing Trump inspired red baseball caps that say, Make Community Banking Great Again!
Trump said that the current law, known as the Dodd-Frank Act, is out of control and his administration is working to reform it, adding that his friends who are community bankers have gone through hell because of stringent regulations.
The 2010 Dodd-Frank law clamped down on certain banking practices and expanded consumer protections to try to prevent a repeat of the 2008 financial meltdown.
The president also said that he likes the sense of power he gets working in the Oval Office and describes one instance when the awe of the office made an industry official cry.
Speaking in an interview on Monday during the CBS This Morning, Trump said that he prefers to negotiate from inside the Oval Office, as he included recent discussions on the military's F-35 program.