Trump to order U.S. Treasury to delve into taxes, post-crisis reforms




  • In US
  • 2017-04-21 12:09:39Z
  • By By Lisa Lambert
U.
U.

By Lisa Lambert

WASHINGTON (Reuters) - U.S. President Donald Trump will order the Treasury on Friday to find and reduce tax burdens and review post-financial crisis reforms that banks and insurance companies have said hinder their ability to do business.

A White House official said on Thursday that Trump will issue an executive order directing the Treasury on the tax issues. He will also issue two memoranda asking for reviews of two parts of the 2010 Dodd-Frank Wall Street reform law - the Orderly Liquidation Authority that sets out how big banks can wind down during a crisis and the Financial Stability Oversight Council (FSOC), which is made up of the country's top regulators.

The orders, which Trump will sign at the Treasury Department, next door to the White House, comes as the president works toward making good on a major campaign promise to lower taxes.

Treasury Secretary Steven Mnuchin will review significant tax regulations issued in 2016 to determine if any impose an undue financial burden on American taxpayers, add undue complexity or exceed statutory authority, the official's statement said.

Mnuchin said earlier on Thursday that Treasury is working on tax reform "day and night" and will soon create a sweeping overhaul.

Congress recently failed in efforts to make good another Trump campaign promise to reform healthcare.

House of Representatives Speaker Paul Ryan said this week that the country's first tax overhaul in decades may not be done until well into 2017. The review that Trump is ordering gives the administration a way to approach the issue independent of Congress.

The liquidation authority and the FSOC were both created as part of the Dodd-Frank law intended to prevent a repeat of the 2007-09 financial crisis, when the U.S. government injected billions of dollars in aid into failing banks to keep them from destroying the country's economy.

In February Trump ordered a review of the law, saying he wanted to cut out much of it, and Mnuchin has said he would like to look into how the council, which he chairs, works.

House Republicans are also working to loosen Dodd-Frank regulations. Banks say the regulations have hurt their liquidity and created burdensome processes.

Trump will order an assessment of how the FSOC designates a financial institution as "systemically important," which triggers requirements to hold more capital in case it comes into crisis.

Republican lawmakers say the FSOC uses a flawed process lacking transparency to designate non-bank institutions. Only two insurers, American International Group Inc and Prudential Financial Inc, currently carry the label, and a judge last year struck down the council's designation of MetLife Inc.

Mnuchin will have 180 days to report to Trump on the liquidation authority, a tool for federal banking regulators to use if they need to step in during a financial emergency and help a failing bank unwind. The report will offer views on using bankruptcy as an alternative, the impact of failing companies on financial stability, and whether the authority could drive up taxpayer costs or encourage excessive risk-taking.


(Writing by Eric Beech and Lisa Lambert; Editing by Cynthia Osterman and Leslie Adler)

COMMENTS

More Related News

Exclusive: Trump says
Exclusive: Trump says 'major, major' conflict with North Korea possible, but seeks diplomacy

By Stephen J. Adler, Steve Holland and Jeff Mason WASHINGTON (Reuters) - U.S. President Donald Trump said on Thursday a major conflict with North Korea is possible in the standoff over its nuclear and missile programs, but he would prefer a diplomatic outcome to the dispute. "There is a chance

Trump orders review of national monuments, seeks to allow development
Trump orders review of national monuments, seeks to allow development
  • US
  • 2017-04-26 18:02:27Z

By Valerie Volcovici WASHINGTON (Reuters) - U.S. President Donald Trump signed an executive order on Wednesday to identify national monuments that can be rescinded or resized - part of a broader push to open up more federal lands to drilling, mining and other development. The move comes as part of Trump's effort to reverse a slew of environmental protections ushered in by former President Barack Obama that he said were hobbling economic growth - an agenda that is cheering industry but enraging conservationists. Trump signed the order at the Interior Department in Washington, saying that his predecessors' use of the 1906 Antiquities Act to create monuments marked an "egregious abuse of...

Details of Trump
Details of Trump's tax plan revealed

It will slash corporate taxes and tweak personal tax rates but excludes a tax on imports favored by some congressional Republicans.

Why are far-right speakers flocking to liberal Berkeley?
Why are far-right speakers flocking to liberal Berkeley?

A man is sprayed with a chemical irritant as multiple fights break out between Trump supporters and anti-Trump protesters in Berkeley, California, on 15 April. The college town so deeply liberal that it is referred to as "the People's Republic of Berkeley" is now a favored destination for the far right, resulting in a number of violent encounters on the city's streets and the University of California's flagship campus. A new confrontation is expected on Thursday, when rightwing commentator Ann Coulter plans to speak on the UC Berkeley campus in defiance of the administration's request that she hold her event a week later at a secure location.

U.S. judge blocks Trump order to restrict funding for
U.S. judge blocks Trump order to restrict funding for 'sanctuary cities'
  • US
  • 2017-04-25 23:47:30Z

By Dan Levine SAN FRANCISCO (Reuters) - A U.S. judge on Tuesday blocked President Donald Trump's executive order that sought to withhold federal funds from so-called sanctuary cities, dealing another legal blow to the administration's efforts to toughen immigration enforcement. The ruling from U.S. District Judge William Orrick III in San Francisco said Trump's Jan. 25 order targeted broad categories of federal funding for sanctuary governments and that plaintiffs challenging the order were likely to succeed in proving it unconstitutional.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: US

facebook
Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.