Trump orders review of tax and financial regulations

Economy | Politics 4/21/2017, 9:02 PM
Trump orders review of tax and financial regulations

United States President Donald Trump signed an executive order and two presidential memoranda on Friday at the US Treasury Department, directing Treasury Secretary Steven Mnuchin to analyze core aspects of and simplify the Dodd-Frank Act and tax regulations adopted in 2016.

The move comes after the president gave a similar executive order in February, calling for a review of financial regulation issued in the wake of the financial crisis of 2008. In particular, the new order instructs Mnuchin to conduct a review of tax regulations from 2016 and determine if any of them are too costly, complex or outside of an agency's authority. The tax review includes the Obama administration's rules from 2016 on corporate tax inversions, which refer to situations where an American company merges with a foreign one and reincorporates abroad to cut its tax bill.

Apart from that, one of the memos temporarily bars regulators from identifying new non-bank financial institutions as systemically important, or "too big to fail," and thus in need of tighter oversight. The other puts a temporary halt to the use of the so-called orderly liquidation authority to unwind troubled financial institutions, unless the president orders such a move in an emergency.

TeleTrader Newsroom / IB