What is the real impact of Trump? A change in the regulatory measures of the United States (US) financial system considerably transforms the economic and commercial scenario of the North American country and of the nations that established or plan to develop business with it.
Since the beginning of the administration of the current US President, Donald Trump, the attempt to modify banking regulations had generated uncertainty. Finally, in June of this year, the Trump administration presented its plan to reform banking regulations. With the intention of relaxing the restrictions imposed on the request of financial credits.
The new measures, reported by U.S. Treasury Secretary Steven Mnuchin, seek to stimulate lending growth and employment by breaking down costs and barriers, the official report said.
This regulation opposes the so-called Dodd-Frank Wall Street Reform Act, created seven years ago under the presidency of former President Barack Obama, in the face of the economic crisis that had been warned of. by the collapse of the giant Lehman Brothers.
At the time, the aforementioned statute had its genesis in the need to generate stronger banking institutions. To face the economic situation, but it has also been heavily criticized for being considered a hindrance to investments in the US by reducing access to credit and hindering the free market.
What does Trump's financial approach legally entail?
It is still too early to try to clarify the outlook for the 15 pages of recommendations suggested by the Republican president. However, uncertainty has set in and has forced some firms and consulting firms to outline some possible scenarios from a legal and economic point of view.
The trends point to possible regulatory divergence within the global economy. Recognizing the commercial and economic weight of the U.S. in global transactions, which is likely to result in a modification of financial regulatory frameworks in other economies, i.e., a financial legal overhaul at the hands of legal professionals in various nations.
If the United States relaxes its financial regulations, it is likely that European and especially British banking institutions will relax their legislation from now on, in order to achieve harmony in the international market.
Analysts warn If this forecast is realized, lending in the U.S. could increase, which would also help to boost loan growth in the old continent.
The change in the U.S. regulatory framework requires the revision of all economic and commercial agreements established with the U.S. nation. The abandonment of the U.S. from international regulatory bodies in banking matters.
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