US President Donald Trump signed another executive order to deregulate the financial industry in the U.S. on last Friday, February 3. The executive order is including clauses to revise the Dodd-Frank Act which was enacted during Obama administration to regulate the financial industry. The executive order may push the financial industry back to 10 years ago by revising it.
Created to regulate financial institutions
After signing so many executive orders in the first 2 weeks of presidency, US President Donald Trump signed even another one on last Friday. This time, the order is to deregulate the financial industry. After this news came out, not only financial stocks but also other stocks soared on the NYSE on the same day.
So what does it mean to deregulate the financial industry? One of the most important factors is revision of the Dodd-Frank Act that President Trump promised to do during his election campaign.
The Dodd-Frank Act is a law to regulate the financial industry in the U.S. enacted in 2010 during Obama administration after the global financial crisis in 2008. The act was named after Senator Chris Dodd and Congressman Barney Frank who created it.