On the campaign stump in Charlotte, North Carolina last October 26, Donald Trump promised to bring back a 21stCentury version of the Glass-Steagall Act as a means of reforming Wall Street’s casino culture. At around noon today, Trump will continue the Orwellian reverse-speak of his campaign promises and do the opposite of what he promised. According to leaks to the financial media, Trump will today sign executive actions ordering swift reviews aimed at rolling back the feeble safeguards on Wall Street that currently exist while replacing them with – nothing. There has been no further word from Trump on bringing back the core principles of Glass-Steagall which would force the formal separation of banks holding taxpayer-backstopped insured deposits from the high-risk, derivatives-peddling, hedge-fund-financing investment banks.
Trump is expected to sign one executive action today ordering financial regulators to review rolling back parts of the Dodd-Frank financial reform legislation that was passed by Congress in 2010. Another executive memorandum is expected to order the Labor Department not to implement the Fiduciary Rule that was set to take effect in April. The Fiduciary Rule, hated by Wall Street and its lobbyists, would force Wall Street firms to put the interests of clients owning retirement accounts above the interests of the firm. For example, it would mean that Wall Street would have to offer the client the best mutual fund at the lowest fee rather than one of its own in-house concoctions laden with far more onerous, self-serving fees and investments. Wall Street has had the gall to say the Fiduciary Rule is bad because it would limit opportunities for investors. Apparently, Wall Street means it would limit the opportunity for investors to be fleeced, thus limiting profits on Wall Street.
This post was published at Wall Street On Parade By Pam Martens and Russ Marte.