Biden Revokes Core Principles for Regulating the Financial System
Executive order 13772 (Core Principles for Regulating the United States Financial System) (1) was an order issued by President Donald Trump in 2017 that looked to create a set of core principles which would regulate the United States financial system (2). What was inside this order, and why was it revoked by President Biden?
The executive order contained just 7 of these 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;
(f) make regulation efficient, effective, and appropriately tailored; and
(g) restore public accountability within Federal financial regulatory agencies and rationalize the Federal financial regulatory framework. (3).
It was hoped and believed that over time these core principles would increase the competitiveness of United States based companies both domestically and internationally, foster economic growth across the country, and make financial regulations more streamline for Americans.
Section 2 of the executive order required the secretary of the U.S. Department of the Treasury to provide President Trump or future Presidents with a report, “reviewing how the order’s core principles were reflected in existing financial regulations, recommending regulatory improvements, and noting any actions taken to promote the core principles.” (4).
The Secretary of the U.S. Department of the Treasury issued three reports before the order was revoked by President Biden with no real explanation as to why it was revoked. Those three reports can be found here -
First report — https://www.treasury.gov/press-center/press-releases/Pages/sm0106.aspx (5)
Second Report — https://www.treasury.gov/press-center/press-releases/Pages/sm0173.aspx (6)
Third Report — https://www.treasury.gov/press-center/press-releases/Pages/sm0193.aspx (7)
-Trent Naz
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Source List -
(1) Trump, D., 2021. [online] Govinfo.gov. Available at: <https://www.govinfo.gov/app/details/DCPD-201700094> [Accessed 12 March 2021].
(2) Trump, D., 2021. Core Principles for Regulating the United States Financial System. [online] Federal Register. Available at: <https://www.federalregister.gov/documents/2017/02/08/2017-02762/core-principles-for-regulating-the-united-states-financial-system> [Accessed 10 March 2021].
(3) Trump, D., 2021. Core Principles for Regulating the United States Financial System. [online] Federal Register. Available at: <https://www.federalregister.gov/documents/2017/02/08/2017-02762/core-principles-for-regulating-the-united-states-financial-system> [Accessed 10 March 2021].
(4) Ballotpedia. 2021. Presidential Executive Order 13772 (Donald Trump, 2017). [online] Available at: <https://ballotpedia.org/Presidential_Executive_Order_13772_(Donald_Trump,_2017)> [Accessed 10 March 2021].
(5) Treasury.gov. 2021. Treasury Releases First Report on Core Principles of Financial Regulation Stimulating Economic Growth, Increasing Access to Capital & Taxpayer Protection Are Top Priorities. [online] Available at: <https://www.treasury.gov/press-center/press-releases/Pages/sm0106.aspx> [Accessed 12 March 2021].
(6) Treasury.gov. 2021. Treasury Releases Second Report On The Administration’s Core Principles Of Financial Regulation. [online] Available at: <https://www.treasury.gov/press-center/press-releases/Pages/sm0173.aspx> [Accessed 12 March 2021].
(7) Treasury.gov. 2021. Treasury Releases Third Report On The Administration’s Core Principles For Financial Regulation. [online] Available at: <https://www.treasury.gov/press-center/press-releases/Pages/sm0193.aspx> [Accessed 12 March 2021].
