Presidential Executive Order on Core Principles for Regulating the United States Financial System

A relatively brief order, it essentially does two things: 1) declares six core principles; and 2) directs the Secretary of the Treasury to review all laws, regulations, etc. and report within 120 days how they relate to the core principles.

Here are the core principles:

(a) empower Americans to make independent financial decisions and informed choices in the marketplace, save for retirement, and build individual wealth;

(b) prevent taxpayer-funded bailouts;

(c) foster economic growth and vibrant financial markets through more rigorous regulatory impact analysis that addresses systemic risk and market failures, such as moral hazard and information asymmetry;

(d) enable American companies to be competitive with foreign firms in domestic and foreign markets;

(e) advance American interests in international financial regulatory negotiations and meetings;

(g) restore public accountability within Federal financial regulatory agencies and rationalize the Federal financial regulatory framework.

[Ed. Note: Whoever drafted and reviewed this order failed to notice that alphabetically, item (e) should be followed by (f) not (g). I suspect an earlier draft had an item (f) that was deleted from the final version. I missed this typo on first reading, but discovered it after cutting and pasting from the original to here. Such typos are very easy to create in document revisions, but this is evidence of haste and a less than fully effective process for systematic review before signing presidential actions.]  Update: After seeing the errors in the memorandum signed the same day as this order, it appears the editor of the White House website is the problem and the typo may not be in the official signed document.

While the language of the principles sounds reasonable and good, for the most part, the intent of this order is to minimize regulation and maximize profits.

The real damage is yet to come via official regulation changes and new and/or repealed legislation.

Executive Order signed February 3, 2017.

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