Morgan Stanley CEO James Gorman defended Dodd-Frank in an interview with CNBC on Thursday, weighing in on the uncertain future of the act under the incoming Trump administration.
“Let me be very clear about this, I am not a fan of getting rid of Dodd-Frank,” Stanley told CNBC.
However, he continued, “There are elements of Dodd-Frank that clearly need to be curtailed.”
Shortly after winning the election, President-elect Donald Trump’s transition teamposted his plans for the first days in office, which included his plan to “dismantle” the Dodd-Frank Wall Street Reform Act.
The website calls Dodd-Frank a “sprawling and complex piece of legislation that has unleashed hundreds of new rules and several new bureaucratic agencies,” including theConsumer Financial Protection Bureau.
During the interview, Mnuchin said, “The No. 1 problem with Dodd-Frank is it is way too complicated and it cuts back lending.”
“We want to strip back parts of Dodd-Frank that prevent banks from lending and that will be the No. 1 priority on the regulatory side,” he told CNBC.