The US Treasury department is preparing to release a report on Monday that will propose a revamp of banking regulations, according to The Wall Street Journal. The financial newspaper also highlights that Trump administration officials will recommend limiting the powers of the Consumer Financial Protection Bureau (CFPB).
A broad range of banking rules are being reviewed and reassessed. There are no immediate plans to curtail the Volcker rule, which prevents financial institutions from using their own funds to place bets on the market. The paper is said to be reviewing the possibility of limiting the action to banks that have less than $10 billion in assets.
The report is following up on an executive order signed by President Trump in February, which directed different agencies to find ways to reduce regulatory burdens on business.
The proposals in the report are not going as deep as the legislation which the US House of Representatives passed last week. The Republicans pledged last week to overhaul financial Regulation in a brisk fashion, seeking an end to the major hurdles that face financial institutions.
The US Treasury is also criticizing the CFPB for its oversight of financial institutions. The correct legislative framework does not allow the White House to replace the director of the bureau. Any changes to the operation will need to be ratified by congress.
The Community Reinvestment Act is also likely to get a review, The Wall Street Journal reports. The law is aimed at ensuring that banks address local credit needs. Leveraged loans will also get a review. The US Treasury is expected to release the document later on Monday. Full details to follow.
