It’s been awhile since President Donald Trump signed an executive order of note – but there are a number of “financial related” orders planned to be signed later today.
What could they deal with? There was plenty of speculation initially, but the White House quickly made it clear that one would deal with taxation, and two with financial regulation. The former will be enacted through an executive order, while the latter two will take the form of “presidential memorandums.” According to The Hill, All three documents will direct Treasury Secretary Steven Mnuchin to analyze key provisions of the Dodd-Frank financial reform law and the tax code, and report back on ways to improve them. CNBC first reported that Trump would sign two executive orders at the Treasury.
Trump promised to “dismantle” Dodd-Frank during his campaign and signed two executive orders in February instructing his Cabinet to look for economically beneficial reforms that could be made to the law. It’s unclear how the two memoranda to be signed Friday differ from previous orders.
The executive order directs Mnuchin to review “significant” tax regulations issued in 2016 and determine if any are too costly, complex or outside of an agency’s authority. The White House and Republican lawmakers are eager to reform the country’s tax code for the first time in 30 years and are working on separate plans to do so, though only Congress can write and repeal taxes.
One memorandum directs Mnuchin to asses the Financial Stability Oversight Council’s (FSOC) process of designating banks and financial firms “too big to fail.” FSOC, a multiagency group established in Dodd-Frank, monitors financial risks and designates certain banks and financial firms as “systemically important financial institutions” (SIFIs). That label subjects banks to tougher federal oversight, and Republicans claim the designation is applied inconsistently and arbitrarily.
Mnuchin sent the markets soaring yesterday when he said that “we’re [the Trump administration] getting pretty close to tax reform.” The administration has thus far missed their own deadlines for providing a general tax reform plan, and Mnuchin says that it hopefully will not “take till the end of the year” for reform to be passed.[Note; This post was authored by Matt Palumbo. Follow him on Twitter @MattPalumbo12]