- Whether by Democrat's machinations or Trump's performance, this administration does not have the appointees running the agencies that oversee financial rules.
- New legislation have to be passed in order to ease the current legislation. That means all will have to get along and play nicely, and quickly. Two weeks into the presidency, the Democrats are playing scorched earth and the GOP questioning and questioning again, support for Trump in light of what many perceive to be missteps or even incompetence.
- Trump has purposely placed livefire lightning rods in the form of two former Goldman Sachs partners as the lead in the effort to repeal bank regulation in the same economic cycle that said bank assisted in tearing down the global economy. The further galvanizes a partisan congress, and even gives some GOP members reason for pause.
Obama era protections eyed for the Ax
At risk of removal are:
- Proprietary trading restrictions;
- Systemic financial institution designation
- Financial institution dismemberment upon insolvency (Big Banks To Tell U.S. Regulators How To Dismember Their Corpses).
- the Consumer Financial Protection Bureau.
Most importantly (at least to many potential subscribers to our advisory servers) Trump is Rolling Back Obama Legislation That requires financial institutions to put their clients interests above their own. This has a special place in my heart, for we have a long track record of countering the effects of Wall Street banks putting their bonus pool above the interests of their clients. This is not only germain to retail investors and mom and pops accounts. Institutions and UHNW get fleeced for more than anyone else.
How about our friends at Goldman Sachs and Henry Paulson (Bush's Treasury secretary!) settle fraud lawsuit over Abacus investments (Goldman Sachs, Paulson settle fraud lawsuit over Abacus). The victim was a mortgage insurer, hardly an amateur investors. How about Goldman Sachs Agrees to $5 Billion Mortgage Settlement .. Or how about Deutsche Bank Agrees to Pay $7.2 Billion for Misleading Investors. I can go on, but I think you get the point. BoomBustBlog independent research and forensic advisory services are going to be in very high demand.
This liberalizing of Obama era rules is in direct contravention to the populist platform that Trump ran on (with a special part featuring Goldman Chief Executive Officer Lloyd Blankfein in an segment about corporate chieftains pocketing the wealth of American workers)....
That was the spiel. Here's the reality...
If you haven't already, see Apple's 2017 1st Quarter Results as Viewed Outside the Reality Distortion Field for how Wall Street banks are already gearing up to get them bonuses.... Now, more than ever, the services of BoomBustBlog are needed by both individuals and institutions!