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Executive Order to Limit Dodd-Frank
Monday, February 6, 2017 6:45 AM

President Donald Trump has made no secret of his aversion to all things regarding the Dodd-Frank Act, and Friday he signed an executive order for a full review of the act. Cornerstone Credit Union League thanks the administration for acknowledging the importance of tailoring regulations based on risk profile.

Cornerstone Chief Advocacy Officer Jim Phelps said, “This is welcome news, because credit unions and other community-based financial institutions have been among the collateral damage resulting from Dodd-Frank. Credit unions were the original 'consumer protection' agency because we are owned by our members and did not engage in the activity that led to the financial crisis.”

CUNA President/CEO Jim Nussle said in Friday's Nussle Report, "One-size-fits-all regulations are simply not appropriate for credit unions and their members. We look forward to further work with the administration and Congress on creating a regulatory environment that allows credit unions to serve their members in the responsible ways they always have." 

The order lays out core principles for the regulation of the U.S. financial system and calls for Americans to be empowered to make independent and informed financial choices, as well as to foster economic growth through more rigorous regulatory impact analysis.

The order also calls for the Secretary of the Treasury to consult with the heads of Financial Stability Oversight Council (FSOC) members, which includes the NCUA and the Consumer Financial Protection Bureau, within 120 days to determine the extent to which existing regulations and guidance promote the core principles.

Dodd-Frank came in the wake of the 2008 financial crisis and added regulatory exams and stiff regulations to financial institutions, giving rise to regulatory bodies such as the CFPB and FSOC.