President-Elect Trump's nominee for Treasury Secretary, Steven Mnuchin, stated that the "number-one problem with Dodd-Frank is it's way too complicated and cuts back lending." He stated that he intends to "strip back parts of Dodd-Frank that prevent banks from lending," which will be the "number-one priority on the regulatory side." In an exclusive CNBC "Squawk Box" interview, he described the Volcker Rule as "too complicated," and complained that "people don't know how to interpret it."
In the interview, Mr. Mnuchin and Trump-appointed Commerce Secretary Wilbur Ross emphasized that tax reform is also a "number one priority." Mr. Mnuchin stated that he would effect the "largest tax change since Reagan," and would cut corporate taxes in order to create "huge economic growth." Mr. Mnuchin added that this change was designed to be a "middle-income tax cut and the childcare credit is a big aspect of this."
Commentary / Steven Lofchie
Maintaining a sensible financial regulatory system, in which businesses can operate freely without fearing regulatory attacks, becomes impossible when the rules are too complex to interpret. It is refreshing to hear the simple statement from the new nominee for Treasury Secretary that some of the rules we have now are just "too complicated"!
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