Feb 10, 2017

Top Wall Street lobbyist sees little hope for Dodd-Frank rollback

Financial Services Roundtable chief Tim Pawlenty told the Wall Street Journal Friday that he doesn't expect major changes to financial regulation, given the ability of Democrats to filibuster most changes.

Instead he is focusing on executive appointments to key regulatory positions like "second- and third-tier political appointees" at the Treasury and Labor Departments, and the head of the SEC. This mirrors what Trump economic advisor Gary Cohn put forward when announcing the administration's intent to reform the regulatory apparatus. "Personnel is policy," Cohn said.

The CFPB exception: The Journal reports that House Republicans have removed language from their latest reform proposal that would have changed the CFPB to a five-person bipartisan commission rather than a bureau headed by a single, powerful director. Pawlenty sees this change as a move that allows the bipartisan commission idea to be presented as a compromise to attract conservative Democrats.

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