(Adds details about Jeb Hensarling's plans to reintroduce a new
draft of legislation to overhaul Dodd-Frank)
By Jeff Mason and Sarah N. Lynch
WASHINGTON, April 11 President Donald Trump told
a group of chief executives on Tuesday that his administration
was revamping the Wall Street reform law known as Dodd-Frank and
might eliminate the rules and replace them with "something
At the beginning of his administration, Trump ordered
reviews of the major banking rules put in place after the 2008
financial crisis, and last week he said officials were planning
a "major haircut" for them.
"For the bankers in the room, they'll be very happy because
we're really doing a major streamlining and, perhaps,
elimination, and replacing it with something else," Trump said
"That will be the minimum. But we're doing a major
elimination of the horrendous Dodd-Frank regulations, keeping
some obviously, but getting rid of many," he said.
The White House is not unilaterally able to upend
Dodd-Frank’s rules, almost all of which are implemented by
independent regulatory agencies like the Securities and Exchange
Commission and the Federal Reserve.
A sweeping change to the law would require congressional
action, though in some cases regulators may also have wiggle
room to make changes through a formal rule-making process.
In February, Trump issued an executive order requiring
Treasury Secretary Steve Mnuchin to consult with U.S. regulators
and submit a report outlining a proposal for possible regulatory
and legislative changes that would help fuel economic growth and
promote American business interests.
That report, due to be released in June, will likely serve
as a blueprint for possible changes down the road.
Congressional action on a Wall Street bill is not expected
in the near term, as Congress focuses primarily on healthcare
and tax reform.
On Tuesday, House of Representatives Financial Services
Committee Chairman Jeb Hensarling announced that he was planning
to introduce a new draft by month's end of sweeping legislation
known as the "Financial CHOICE Act" that would give Dodd-Frank a
The new draft of the bill would largely defang the Consumer
Financial Protection Bureau's supervisory powers and make the
director removable at will.
It would also revamp bank stress-testing rules and loosen
securities regulations to help companies raise cash.
The bill is likely to face an uphill battle in the Senate,
where Democrats are expected to be resistant and a 60-vote
threshold is needed to pass legislation.
Participants in Tuesday's meeting included Rich Lesser,
chief executive of Boston Consulting Group; Doug McMillon, chief
executive of Wal-Mart Stores Inc; Indra Nooyi, chief
executive of PepsiCo; Jim McNerney, former chief
executive of Boeing Co; Ginni Rometty, chief executive of
IBM; and Jack Welch, former chairman of General Electric
The business leaders are part of Trump's "Strategy and
Policy Forum" that last met with him in February.
Trump also reiterated his criticism of the North Atlantic
Free Trade Agreement between the United States, Canada and
"NAFTA is a disaster. It's been a disaster from the day it
was devised. And we're going to have some very pleasant
surprises for you on NAFTA, that I can tell you," he said.
(Reporting by Jeff Mason and Sarah N Lynch; additional
reporting by Patrick Rucker; Editing by Alistair Bell and