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Trump targets Dodd-Frank rules designed to wall off risky banks

President Trump and Treasury Secretary Steven T. Mnuchin enter the Treasury Department on Friday. (JIM WATSON / AFP/Getty Images)
President Trump and Treasury Secretary Steven T. Mnuchin enter the Treasury Department on Friday. (JIM WATSON / AFP/Getty Images)

President Trump, who has vowed to dismantle the landmark Dodd-Frank financial reform law, took aim at two of its pillars Friday.

During an appearance at the Treasury Department, Trump signed two presidential memos ordering six-month reviews of the 2010 law’s authority for regulators to designate large firms as a risk to the financial system and to try to shut them down with minimal collateral damage if they’re on the verge of failing, the White House said.

Although the regulations were designed to end the problem of too-big-to-fail banks, Republicans have complained they do the opposite because the government would still step in instead of letting a firm fall into bankruptcy.

“These regulations enshrine too-big-to-fail and encourage risky behavior,” Trump said.

Trump also signed an executive order directing Treasury Secretary Steven T. Mnuchin to review significant changes to the tax code since the start of 2016 to determine whether they “impose an undue financial burden on American taxpayers,” “add undue complexity” or “exceed statutory authority,” the White House said.

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