Order seeks to ‘restore accountability, rationalize’ federal financial regulatory system

Restoring public accountability within federal financial regulatory agencies, and “rationalizing the federal financial regulatory framework” are two key points stated in President Donald Trump’s order on “Principles for Regulating the United States Financial System,” which he signed Friday.

Additionally, the executive order directs that a report be conducted to determine what actions (including laws and regulations) are being followed out “to promote and support the Core Principles.” The report, to be completed by the Secretary of the Treasury, is to be completed within 120 days.

“That report, and all subsequent reports, shall identify any laws, treaties, regulations, guidance, reporting and recordkeeping requirements, and other Government policies that inhibit Federal regulation of the United States financial system in a manner consistent with the Core Principles,” the order states.

However, the 399-word order provides no more details about “restoring public accountability” or “rationalizing” the federal financial regulatory agencies and framework, which makes up one of six of “core principles” in the document. The other five are:

  • empower Americans to make independent financial decisions and informed choices in the marketplace, save for retirement, and build individual wealth;
  • prevent taxpayer-funded bailouts;
  • foster economic growth and vibrant financial markets through more rigorous regulatory impact analysis that addresses systemic risk and market failures, such as moral hazard and information asymmetry;
  • enable American companies to be competitive with foreign firms in domestic and foreign markets;
  • advance American interests in international financial regulatory negotiations and meetings;

Presidential Executive Order on Core Principles for Regulating the United States Financial System