Unlike a broader past executive order designed to roll back the Dodd-Frank Wall Street Reform Act, the landmark legislation passed in wake of the financial crisis, Friday’s executive memorandum focused on the orderly liquidation authority part of Dodd-Frank.
From the USA Today piece:
Direct the Treasury Secretary not to use orderly liquidation authority to bail out insolvent financial institutions, reigniting the debate over a key provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Critics have said that provision could actually allow banks to take more risks than they ordinarily would, and Trump wants to re-examine whether court-supervised bankruptcy would be a better way to wind down failing banks.
“It doesn’t sound like much, but it is,” Trump said on signing the directive. “That’s a biggie.”