STAFF NEWS & ANALYSIS
Trump’s Planned Pruning of Regs Needs to Go Much Further
By Daily Bell Staff - February 03, 2017

Trump to sign executive actions targeting Obama financial regulations … The president is expected to sign a pair of executive orders targeting rules imposed on the financial sector Friday, according to senior White House officials.

The president has signed two executives order that will free up the ability for companies and Wall Street to function with less paperwork and regulatory reporting.

One of the bills that Donald Trump has started to repeal is called Dodd Frank. Part of Dodd Frank deals with the Volcker rule that that forbids banks from making trades for their own accounts.

More:

Officials said one specific area that will be reviewed is the “Volcker Rule,” a provision of Dodd-Frank that barred banks from making trades for their own profit rather than accountholders.  However, the order will not result in any direct changes to the current regulatory framework, and its impact could be limited.

For one, the vast majority of post-crisis rulemakings were directed by the Dodd-Frank law and could only be removed by another statute from Congress.  Furthermore, most of the regulators charged with implementing those laws are independent and do not answer directly to the president. President Trump has already named new heads of some of those agencies, such as the Securities and Exchange Commission, and other key personnel are expected to be named soon. 

But in two key regulatory posts — the Federal Reserve and Consumer Financial Protection Bureau — Obama appointees have made clear they intend to serve out their terms into 2018.   

While the rules may not be done away with entirely, the impetus will be to ignore them, or at least to give them less precedence. This is good as far as it goes but it doesn’t go far enough, not if Trump wants to make a real difference in how laws work in this country.

If Trump really wants to make a difference, he will sit down and analyze rules that make real changes regarding how companies operate.

He will probably find out that the largest companies are empowered by a series of post Civil War decisions. Actually the first decision, empowering intellectual property rights, goes back to the constitution. It is probably the hardest to repeal.

The second empowering item is corporate person-hood, which was strengthened in the 19th century and beyond. It was in large part the result of the Civil War that changed how the country operated and threw out a lot of the informal checks and balances that had operated pre-Civil War.

Central banking and the regulatory state generally also contributed to bigness. Today some of America’s largest companies are nearly the size of small countries.

The combination of these companies and the government itself creates a kind of fascism that grows bigger and bigger along with the companies themselves.

The way to get rid of these super-sized companies is to do away with the decisions and regulations supporting them. Simply to free these enormous entities from certain restraining regulations while keeping others in force that have allowed them to grow to such a great size does not make any sense.

When you do this, you continue to empower fascist tendencies in the US government that ought to be done away with.

It will be extremely difficult to remove the necessary rules and regulations that have let a relatively few companies grow so large. But the alternative is to remove a patchwork of legislation that frees up large companies without removing the fundamental reasons they have expanded so mightily.

Conclusion: A real reduction of rules and regulations is necessary, not just a reduction of the rules that the country’s largest corporations would like to see done away with.

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  • Barney Biggs

    For Pete’s sake give him a chance. Two months is hardly a start. I hope he is taking his time and got people working on what regs to dump. Yes about 60% of them are probably garbage and need to go but make sure we know which is which.

    • How about 90 percent. 100 percent?

      • autonomous

        100% is barely enough, but can’t, nor should, be done by executive decree. He could reverse all executive decrees. On the other hand, congress could, and definitely should, reverse the entire federal register. Any law written by any group of legislators should have an expiration date of at least their own life-times. The constitution and its amendments should be considered general principles applicable to all peoples at all times. Although written by and approved by fallible men, even constitutional provisions should be reversible. One provision I would favor amending would be the threshold for approval, which should be by a percentage much closer to100%.

        • Good points. How about reducing the power of the presidency, congress and the court system by 75 – 95 percent as well.

  • john cummins

    counties or countries?

  • Praetor

    Well, it looks like we have Yellen for another year. Unless she doing something that causes one to think she’s been doing things not on the up & up.

    Regulation should be cut by 75% and the EO just signed 1 in, 2 out would be good. Monopoly Laws need to come back into vogue. We have 6 corporations controlling almost 100% of the MSM, this is where competition would be a great serves to the country.

    But, Congress looks like its as big a problem as we all have guessed.!!!

    • autonomous

      Unfortunately, we’re stuck with yelling much longer.

  • 45clive

    Amen to getting rid of corporate personhood, intellectual property and central banking. Getting rid of these three will remove the shackles from most citizens of this planet and help prevent wars.

  • robertsgt40

    This will accomplish nothing. Two things need to happen before the US has a chance. First, audit the Fed (then abolish it). Second, reinstate Glass-Steagall, disallowing commercial banks and investment banks commingling customer assets. I wouldn’t hold my breath on either.

  • Doc

    Getting rid of corporate personhood, intellectual property and central banking would make sense. But is it the best way forward?

    How about going after the Mothership itself, i.e. the territorial monopoly granting those sub-monopolies and regulations?

    When you see a monopoly running amok, do you try to reform it or do you try to end it? I say it would make more sense to take away the privileges of the territorial monopoly, than trying to reform it.

    How? Perhaps by studying the past realities and present theories on the subject. See for example https://www.amazon.com/Panarchy-Political-Theories-Non-Territorial-Routledge-ebook/dp/B019P2PKIU/ref=mt_kindle?_encoding=UTF8&me=.

  • Red Baron

    “Part of Dodd Frank deals with the Volcker rule that that forbids banks from making trades for their own accounts.”

    Sorry, the Volcker rule should stick. Banks are ensured by the Federal government and so shouldn’t be allowed to play fast and loose with their funds.

    As for intellectual property, do you believe an author should not have a copyright on what they write? You think anyone should be able to publish it and not pay them a dime?

    • Ephraiyim

      “You think anyone should be able to publish it and not pay them a dime?”
      Yep. Ideas are not property when publicly shared.
      If one does not want their ideas shared they should lock them up in a safe. Otherwise, once public they are free for both consumption and dispersion.
      That would include books, movies, music, articles, inventions and any other form of art once made public.
      Every word you speak and every thought is essentially plagerized. All ideas you have from the very beginning are merely built upon the ideas of others. Think a baby’s first words (mama, dada) formed in the child’s mind by those words implanted by said parents.
      There is Nothing new under the sun.

  • rahrog

    The federal government is NOT going to untangle the mess it has made. It made the mess deliberately at the behest of the people who profit from the mess, and own the federal government.

    SECEDE…SECEDE…SECEDE!!!

  • Tsigantes

    What about enforcing anti-trust laws?

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