Trump’s plans to dismantle Dodd-Frank unlikely to be realised, says TABB Group

Over 70% of provisions under Dodd-Frank have already been approved in six-year process of implementation.

President-elect Donald Trump’s plans to dismantle the Dodd-Frank Act are unlikely to be fully realised, with over 70% of rule-making requirements already approved and finalised, according to new research.

A report authored by TABB Group explained drafting new rules for a complete overhaul of the regulation from scratch is unrealistic. 

“A wholesale repeal of all Dodd-Frank Act provisions is realistically a non-starter considering the sheer scope of the market covered within the language of the law,” the report said.

It predicted that Trump and his team will set their sights on several aspects of the policy in the short term, including ‘too big to fail’ designations, a repeal of the Volcker Act and a possible reinstatement of the Glass Steagall rules.

The realisation of these proposals would have a “significant impact on liquidity provisioning across the US fixed income markets,” the report said.

Trump’s nomination for Treasury Secretary, Steven Mnuchin, has already stated that if chosen for the role, he would focus on stripping back parts of the Dodd-Frank Act.  

TABB Group reiterated that fixed income markets should expect a persistent “cloud of regulatory uncertainty hanging over the collective US fixed income market.”

Trump described the Dodd-Frank Act as a “sprawling and complex piece of legislation that has unleashed hundreds of new rules and several new bureaucratic agencies.”

His financial services team publicised the administration’s plans to “dismantle the Dodd-Frank Act and replace it with new policies,” earlier this month.