Why Trump's Dodd-Frank replacement is dangerously weak

When it comes to banking regulation, the devil is in the details

Donald Trump and his dud replacement.
(Image credit: REUTERS/Carlo Allegri)

Among President-elect Donald Trump's many promises is to "dismantle" Dodd-Frank, the sweeping reform of the financial industry signed into law by President Obama in 2010. The most likely route will be the CHOICE Act put together by Rep. Jeb Hensarling (R-Texas), who heads up the House Financial Services Committee. This will be easier said than done, however.

Neither Trump nor the GOP want to be seen as the handmaidens of Wall Street. But Dodd-Frank was the big regulatory response to the 2008 financial crisis. Hensarling tries to thread this needle by offering banks and financial firms a choice: Either put up with Dodd-Frank's massive web of rules or meet a 10-percent capital requirement.

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Jeff Spross

Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.