(Adds comment from Treasury spokesperson)
By Olivia Oran and Pete Schroeder
NEW YORK/WASHINGTON May 8 The U.S. government's
review of a landmark 2010 financial reform law will not be
complete by early June as originally targeted, and officials
will now report findings piece-by-piece, with priority given to
banking regulations, sources familiar with the matter said on
President Donald Trump has pledged to do a "big number" on
the Dodd-Frank financial overhaul law, which raised banks'
capital requirements, restricted their ability to make
speculative bets with customers' money and created consumer
protections in the wake of the financial crisis.
In February, Trump ordered Treasury Secretary Steven Mnuchin
to review the law and report back within 120 days, saying his
administration expected to be cutting large parts of
But the Treasury Department is still filling vacancies after
the transition from the Obama administration and there are not
enough officials to get the full review done by early June,
three sources said.
A Treasury spokesperson dismissed the idea the report that
would be broken up because the department is short-handed,
saying the reach of the project could require several separate
reports, as permitted under the executive order.
"Treasury has an entire team dedicated to reviewing the
financial regulatory rules and will begin reporting our findings
to the president in June," the department spokesperson said.
"Given the volume and scope of the issues we are reviewing
that involve potential changes to the financial regulatory
system, we are carefully considering the best options to begin
rolling them out in the most effective and responsible manner,"
the spokesperson said.
The Treasury Department will first report back on what
banking rules could be changed, including capital requirements,
restrictions on leverage and speculative trading.
Examinations of capital markets, clearing houses and
derivatives as well as the insurance and asset management
industries and financial innovation and banking technology will
come later, the sources said.
It could be several months until these other stages of the
financial reform review are completed, some of the sources said.
The piecemeal approach could create challenges for some
sectors if parts of the report are significantly delayed. The
report has been highly anticipated, as it marks the new
administration's most detailed foray into outlining what it
wants to do with financial rules.
Trump previously has spoken only in broad terms about easing
regulation surrounding lending.
Any efforts to rework existing regulations or craft new
legislation will be a lengthy and contentious process, something
that banking lobbyists have said will make any delay to the
administration's initial findings costly for businesses eager
for regulatory relief.
Former BlackRock Inc executive Craig Phillips is
leading the administration's plan for financial deregulation.
Alongside other Treasury officials, he is soliciting feedback
from banking industry groups and executives for how banking
policy should be shaped.
The change in the timing of the Treasury report comes after
Trump ordered a separate review of some key planks of the
Dodd-Frank financial reform law.
In April, Trump signed a pair of executive orders directing
a review of two additional regulatory powers - orderly
liquidation authority, which allows regulators to step in and
wind down a failing financial institution, and systemic
designation, in which certain large firms may be deemed critical
to the overall health of the financial system, meriting stricter
The findings from those reviews are not expected until
(Editing by Carmel Crimmins and Leslie Adler)