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Kitno


Total Posts: 347
Joined: Mar 2005
 
Posted: 2016-11-11 14:29
It seems the incoming President intends to do repeal Dodd Frank and replace the legislation.

Spotted here: Financial Services Reform. Note it's a .gov URL.

"The Dodd-Frank economy does not work for working people. Bureaucratic red tape and Washington mandates are not the answer. The Financial Services Policy Implementation team will be working to dismantle the Dodd-Frank Act and replace it with new policies to encourage economic growth and job creation."

Has anyone any thoughts or insight into what Trump or his team dislike about Dodd Frank?

Too much to hope it involves the Volcker Rule? Party
It's hard to imagine market structure keeps Trump awake at night.

Salut toi, je vais au Social Club avec des amis ce soir, c'est au 142 rue Montmartre. J'ai mis ta robe préférée. Viens me trouver.

Patrik
Founding Member

Total Posts: 1338
Joined: Mar 2004
 
Posted: 2016-11-11 14:57
"It's hard to imagine market structure keeps Trump awake at night."

Strikes me more like the kind a guy who is kept awake at night by hookers and blow..

Sorry, couldn't resist.

Capital Structure Demolition LLC Radiation

Martinghoul


Total Posts: 859
Joined: Oct 2008
 
Posted: 2016-11-11 15:40
One thing I do know...

The Donald will make hedge funds great again.

Insofar as I may be heard by anything, which may or may not care what I say, I ask, if it matters, that you be forgiven for anything you may have done or failed to do which requires forgiveness...

chiral3
Founding Member

Total Posts: 5022
Joined: Mar 2004
 
Posted: 2016-11-11 16:32
We're gonna grab hedge funds by the alpha and make prop great again.

I will say this, personally, I've always felt we should look at taxing wealth and consumption, and then look at how we spend. Hell, Steve Ballmer is working on that. The people with the highest wages are arguably some of the hardest working and most educated that contribute most to the competitive global edge of the country. Tax advantaged wages should, for better or worse, help with the talent in banking, fin tech, insurtech, and tech. I am willing to pay more taxes if this other stuff is looked at seriously. Until then I am not going to complain about paying less taxes, even if I am not wild about "how" I am paying less.

Nonius is Satoshi Nakamoto. 物の哀れ

katastrofa


Total Posts: 369
Joined: Jul 2008
 
Posted: 2016-11-11 16:43
One can always find an convincing reason why they should pay taxes... ;-)

(I thought we were keeping away from politics?)

chiral3
Founding Member

Total Posts: 5022
Joined: Mar 2004
 
Posted: 2016-11-11 17:17
Mine wasn't a political comment at all. I think it is factual to say (at least in terms of economics) having a low-paid worker bust their ass for 12 hours working a register or picking fruit has a far different economic value / impact than 12 hours worked by someone very highly paid, with several years of graduate work, several years of post-graduate work, with 50 employees, who influences large amounts of resources, capital, and money globally. This is not to say that both aren't supporting a family, derive certain mental health from their work, etc. Wealth is taxed lower than wages and the wealthy aren't always busting their asses 12 hours a day or marking their wealth work. I always suspect that rebates for lower paid workers are spent on flat screen tvs instead of being invested in education or business. Consumption that doesn't add value should be taxed more. Not penalized like cigarettes, but something in between. Investments in education, social programs, business, etc. should be rewarded. An incentive for wage earners seems to be a good way to attract and retain the best talent. There are European models that have gone a different direction in terms of wages, and that seems to have worked, but they address wealth and social security and are not large global players (when separated from the EU).

Nonius is Satoshi Nakamoto. 物の哀れ

Kitno


Total Posts: 347
Joined: Mar 2005
 
Posted: 2016-11-11 19:16
I think it's fair to say so far no one's been able to answer my OP question:
Has anyone any thoughts or insight into what Trump or his team dislike about Dodd Frank?

I suspect that answers my question - no one knows!

Salut toi, je vais au Social Club avec des amis ce soir, c'est au 142 rue Montmartre. J'ai mis ta robe préférée. Viens me trouver.

chiral3
Founding Member

Total Posts: 5022
Joined: Mar 2004
 
Posted: 2016-11-11 20:08
We can speculate all we want. The Trump campaign is rather light on details primarily because nobody demands them. The obvious answers are that both Dodd and Frank are Democrats and that the Act is a restrictive financial reform.

Nonius is Satoshi Nakamoto. 物の哀れ

chiral3
Founding Member

Total Posts: 5022
Joined: Mar 2004
 
Posted: 2016-11-12 15:54
"We have to get rid of it or make it smaller."

Nonius is Satoshi Nakamoto. 物の哀れ

ESMaestro


Total Posts: 138
Joined: Jun 2009
 
Posted: 2016-11-12 20:18
Good possibility to see adoption of a number of measures in Hensarling's Choice Act.

Keep Dodd-Frank name and some content on books so to grease some Dem's, including a nod to Obama's ego so he has some type of legacy left behind (Obamacare not looking to healthy).

Choice Act along lines of:
- bank regulatory relief if 10% leverage ratio requirements met
- Repeal of Volcker rule
- CFPB changes from bloat to bipartisan 5 member commission, must meet for annual appropriations requirements




Martinghoul


Total Posts: 859
Joined: Oct 2008
 
Posted: 2016-11-13 15:35
Trying to puzzle out all the internal inconsistencies and paradoxes that characterize Trump is a fool's errand. For instance, while Dodd-Frank is, allegedly, going away, Trump, apparently, has said that he is in favor of bringing back Glass-Steagall. Furthermore, he has also stated that he likes the Volcker Rule.

IMHO, Trump is one of 'em Knightian "unknown unknowns".

Only one certainty exists: he WILL make everything GREAT again.

Insofar as I may be heard by anything, which may or may not care what I say, I ask, if it matters, that you be forgiven for anything you may have done or failed to do which requires forgiveness...

chiral3
Founding Member

Total Posts: 5022
Joined: Mar 2004
 
Posted: 2016-11-13 16:58
Glass-Steagall is an interesting one. I've heard people talk about what Gramm-Leach-Bliley meant for the crisis 10 years later and I have a different perspective on it. What I remember is what it did culturally. An investment banker and a commercial banker could sit complaining over lunch in the MD dining room about what's bothering them. It was during that conversation that debt got transmogrified from commercial liability into off-balance-sheet SPV'd investment assets. This is a little different than what I think drove, for example, AIG FP. Again, I have an unconventional view on this, but believe it was largely Basel and RWA. When you have an insurance company who's slogan is "Tee Eye Aye Aye Triple A all the way!" it's impossible for a banker to not think about RWA under insurance and not the bank. This wasn't cultural, it was just simple math / reg arb. I think you can have a repeal of GLB and address all of these potential issues by making sure the the incentives aren't the same.

Nonius is Satoshi Nakamoto. 物の哀れ

Tradenator


Total Posts: 1586
Joined: Sep 2006
 
Posted: 2016-11-13 19:41
March 2017 Wall Street Journal - "NuclearPhynance's Open Letter to President Trump Suggests Fixes for the Financial Industry. Goldman Sachs is Fuming."

rowdyroddypiper
NP Wrestling Champion

Total Posts: 1181
Joined: Apr 2004
 
Posted: 2016-11-23 06:35
@chiral - excellent points. As Zappa says, you are what you is. I'm a firm believer that deposit taking institutions have no business pretending they're investment banks and investment banks have no business taking deposits. Otherwise you end up with huge balance sheets (that are built on the back of government sponsored insurance, not good management) waiting to get whored out for fees or to generate levered beta that's packaged as alpha / trading acumen. Insurance companies are much worse since their regulators tend to be much less sophisticated and more highly fragmented. There's no circumstance where a bank and insurance company do a deal that shouldn't immediately raise suspicions of a regulatory arb.

Also since Trump is going to make carried interest ordinary income he's certainly not going to make PE great again and that cannot stand.

Revolution to the mean

katastrofa


Total Posts: 369
Joined: Jul 2008
 
Posted: 2016-11-23 11:45
Trump wants to replace carried interest loophole with an outright tax break for PE: http://www.reuters.com/article/us-usa-election-taxes-idUSKCN12B29D

Rashomon


Total Posts: 171
Joined: Mar 2011
 
Posted: 2017-05-12 19:04
Kitno: very late to this thread, but https://twitter.com/ryanjtracy/status/796351381649100800 https://twitter.com/SMTuffy/status/844149384740818945 and the #finreg tag on twitter seems to have a few serious people commenting / asking questions. NB I am not up to date but around election time those are some places I was looking.

From memory (wsj & nyt reports where basic reportage seemed to be done), iirc Dear Leader simply had banker friends who told him D-F had hurt business. In addition anything with liberal / previous administration name on it is bad.


Hope the implied link trail is helpful…
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