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Trump’s Impact on Banks

white houseApproaching Trump's 100th day in office, we took a look at how Trump has handled the financial sector, including the mortgage and housing industry.

The financial sector, including banks, saw a average earning growth of 16.4 percent, with revenue growing over 9 percent. Stocks fell 1.5 percent during the first three months, but have still remained high, after the rally following the election.

"A lot of (the initial rally) was that we don't have (Massachusetts Sen.) Elizabeth Warren whispering into the ear of the president and the secretary of the Treasury," Richard Farley, head of law firm Kramer Levin's leveraged finance group, told CNBC. "There was an embedded discount in the market because of the expectation of a Democratic presidency and Senate and an administration that wanted to stay in good stead with the extreme left of the Democratic Party."

As Trump begins to evaluate Dodd-Frank, the high stocks are remaining unmoved as banks face the future.

“President Trump deserves tremendous praise for taking decisive action to protect taxpayers and our economy," said Financial Services Committee Chairman Jeb Hensarling. He pledged to dismantle Dodd-Frank, and his actions today are another significant step towards ending the Dodd-Frank mistake that has given Washington bureaucrats more power to politically control our economy.

In an additional move to impact the housing industry, effort to level the playing field for American lumber companies, President Trump recently placed a tariff on Canadian lumber. The administration argues that government subsidies for Canadian lumber are unfair. According to U.S. Commerce Secretary Wilbur Ross, the Commerce Department determined a need to impose “countervailing duties of roughly one billion dollars” in response to the subsidies.

Still, not all agree with the president’s recent moves, particularly those against Dodd-Frank.

"After the 2008 financial crisis almost destroyed our economy, Wall Street reform put tools in place to protect working Americans from once again bailing out 'too-big-to fail' banks and financial institutions. Any actions to undermine these protections encourage Wall Street's risky behavior and leave taxpayers and our economy exposed to another catastrophe," Sen. Sherrod Brown, D-Ohio, said in a statement.

 

 

About Author: Seth Welborn

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