Safeguards against financial meltdown under Trump scrutiny
Source: Reuters
POLITICS | Fri Apr 21, 2017 | 2:04pm EDT
Safeguards against financial meltdown under Trump scrutiny
By Pete Schroeder | WASHINGTON
U.S. President Donald Trump will order the Treasury Department on Friday to examine two powers given to regulators to police large financial companies after the 2008 financial crisis, Treasury Secretary Steven Mnuchin said.
In his first visit to the Treasury building, Trump will sign two memos that analysts view as largely affirming existing priorities he has outlined.
One will temporarily bar regulators from identifying new non-bank financial institutions as "systemically important financial institutions, or SIFIs, while also ordering a review of this process, Mnuchin said in a briefing with reporters.
SIFIs face added regulatory oversight and must hold more capital as a buffer against losses.
The other memo will put a temporary halt to the use of orderly liquidation authority to unwind troubled financial institutions unless the president directs it in an emergency. Trump will order a review of this as well, Mnuchin said.
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http://www.reuters.com/article/us-usa-trump-regulation-idUSKBN17N248