Trump moves to ease Wall Street regulations, review 'fiduciary rule' for retirement advisers

U.S. President Donald Trump signed two executive actionsaimed at reforming financial services regulations on Friday. One was an executive order to review the2010 Dodd-Frank Act regulating banks and the other was a presidential memorandumcalling forreview of a rulerequiring retirement advisers to act in their clients' best interests.

"We expect to be cutting a lot out ofDodd-Frank," Trump told the press beforesitting down with top U.S. business leaders andCEOson Friday morning.

"Friends of mine that have nice businesses, they can't borrow money. They just can't get any money, because the banks just won't let them borrow because of the rules and regulations in Dodd-Frank."

Dodd-Frank was signed by PresidentBarackObamain the wake of the 2008-09 financial crisis and designed to improve regulatory oversight, protect consumersand end government bailouts of major banks.

The executive order does not specifically mention Dodd-Frank, but instead directs the secretary of the treasury to review existing laws and regulations and report on whether they are consistent with six "principles of regulation" laid out bythe Trump administration. That could lead to recommendations for reform by Congress.

The Regional Bank Coalition, which represents mid-sized financial institutions, welcomed Trump's directive.

"Dodd-Frank's one-size-fits-all approach for all institutions above $50 billion has created an improperly calibrated environment that harms our institutions and our customers," said spokesman Matt Well in statement.

Retirement savings industry rules under review

The rules affecting the retirement savings industrywere set to take effect in April, and full compliance would have been required by January 2018.

Under the so-called fiduciary rule,brokers who sell stocks, bonds, annuities and other products would have to do more than just make sure the investments they recommend are "suitable" for clients. They would have to meet a stricter standard that has long applied to registered advisers: They will be considered "fiduciaries" trustees who must put their clients' best interests above all.

Too often, regulators say, brokers steer clients toward questionable investments for which the broker receives a fee, thereby acting in their own financial interest instead of the client's.

Wall Street lobbying groups, mutual fund companies, life insurance firms and other industry interests have opposed the rules. They say the stricter requirements could limit many people's access to financial guidance and retirement planning and their choice of investment products.

• What are executive actions and how is Trump using them?

"President Trump's action will make it harder for American savers to keep more of what they earn,"said Senator Sherrod Brown, a member of the Senate Banking Committee, in a statement.

Trump meets business leaders

Trump met withbusiness leaders before signing the executive actions. He reiterated his administration's core economic goals before that meeting: "bringing back jobs," reducing regulationsand cutting taxes.

"We're going to be coming up with a tax bill very soon, a health-care bill even sooner," he said.

Trump also lauded Friday's U.S. employment report showing227,000 new jobs created in Januaryas evidence of "great spirit in the country right now."

Since being sworn in as president, Trump has met withthe leaders of the Detroit Three automakers, as well aspharmaceutical company executives.

Trump's close relationship with business leaders seems to be at odds with theanti-elite message of his presidential campaign.

That message, summed up in a controversial November campaign ad, described"a global power structure that is responsible for the economic decisions that have robbed our working class, stripped our country of its wealth, and put that money in the pockets of a handful of large corporations and political entities."

Members of Trump's business advisory council in attendance atthe White House on Friday included:

• Jamie Dimon, CEO of JPMorgan Chase.
• Elon Musk, founder and CEO of Tesla.
• IndraNooyi, CEO of PepsiCo.
• Jack Welch, former CEO of General Electric.
• Mary Barra, CEO of General Motors.
• Doug McMillon, CEO of Wal-Mart.
• Lawrence Fink, CEO of BlackRock.
• Rich Lesser, CEO of Boston Consulting Group.
• Ginni Rommety, CEO of IBM.
• SteveSchwarzman, CEO of Blackstone.
• Jim McNerney, former CEO of Boeing.

"We're going to talk about how to create jobs, how to createwealth in America. We want to support that agenda," McNerney told reporters.

Uber CEO Travis Kalanick quit Trump's advisory council on Thursdayfollowing pressure from Uber users opposed to Trump's executive order temporarily barring citizens ofseven Muslim-majority countries from entering the U.S.

Tesla CEO Musk said he would use the Friday meeting to raise objections about the policy.