Financial Regulation (E.O. 13772)

Summary

Sets guiding rules for the government to follow when making and enforcing financial laws to help people save money and businesses grow.

What problem does this solve?

Existing financial rules may be too complex and could slow down the economy. This order creates a set of core ideas to review current laws and guide new ones, making them simpler and more effective.

What does this order do?

Establishes Core Principles for financial regulation

Creates seven guiding principles for how the U.S. financial system should be regulated, focusing on empowering consumers, preventing bailouts, and fostering growth.

Directs a review of all existing financial laws

Requires the Secretary of the Treasury to report on how current laws and rules match up with the new Core Principles and to identify those that do not.

Aims to prevent taxpayer-funded bailouts

Lists the prevention of bailouts funded by taxpayers as a key goal for financial regulation.

Focuses on helping American companies compete globally

States that financial rules should help U.S. companies be competitive against foreign firms in both domestic and international markets.

Who does this affect?

Financial institutions
Federal regulatory agencies
American consumers and investors

What is the real world impact?

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Promotes economic growth through simpler rules

Aims to make financial regulations more efficient and less burdensome. This could encourage more activity in financial markets and help American companies compete better around the world.

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Signals a shift toward financial deregulation

Directs a review of all existing financial laws based on principles of growth and competitiveness. This could lead to the weakening or removal of rules put in place to prevent financial crises.

When does this start?

This order takes effect immediately and requires a report from the Secretary of the Treasury within 120 days.

Treasury Department report deadline

The Secretary of the Treasury must report to the President within 120 days of February 3, 2017, on how existing financial policies align with the Core Principles.