Watch Live: Trump Signs Executive Orders On Corporate Inversions and Dodd-Frank Regulations

Tyler Durden's picture

As pressure mounts on Trump to post some victories within the totally arbitrary window of the "First 100 Days" of his administration, the President just joined Treasury Secretary Steven Mnuchin to sign a combination of executive orders and memos targeting the reduction of tax regulations and certain components of Dodd-Frank.  As we noted earlier, the executive orders and memos signed today are expected to (i) initiate a review and potential unwind of executive orders signed by Obama in 2016 to limit corporate inversions and (ii) initiate a thorough review of the orderly liquidation authority granted to the Federal Deposit Insurance Corp. (FDIC) under Dodd-Frank.

  • TRUMP: THIS REGULATORY REDUCTION IS FIRST STEP TO TAX REFORM
  • TRUMP: 2 DIRECTIVES WILL REVIEW DAMAGE OF DODD-FRANK REGS
  • MNUCHIN: WE'RE FOCUSED ON ACHEIVING COMPREHENSIVE TAX REFORM
  • MNUCHIN: REVIEW IS THOROUGH AND WILL DELIVER FINDINGS IN JUNE
  • MNUCHIN: WE'LL SEE IF FSOC AND OLA RULES IN PLACE MAKE SENSE

 

For those who missed it, below is our preview of today's signings from earlier.

* * *

Per a statement from the White House, one of Trump's new executive orders will seek to undo tax rules put in place in the last year of Obama's presidency that were designed to limit so-called 'corporate inversions' which allows U.S. traded companies to recognize income in lower cost countries like Ireland.  Per Bloomberg:

Under President Barack Obama, Treasury sought to rein in U.S. companies’ attempts to shift their profit offshore by proposing rules that would curb so-called “earnings stripping” and inversions -- mergers in which U.S. companies transfer their tax address overseas to low-tax countries like Ireland to cut their tax bills.

 

Some of those rules, first proposed in April 2016, sought to restrict lending among subsidiaries of the same corporate parent, a technique that can create income in low-tax countries and tax-deductible interest payments in the U.S. The proposed rules met a barrage of criticism from corporations and tax lawyers, who complained that they went too far by banning common, everyday cash-management practices that have nothing to do with tax avoidance.

 

Amid the criticism, Treasury last October softened the proposed rules to allow cash pooling, a common corporate money-management technique in which excess cash in subsidiaries is swept daily into a single pool. It also delayed a related proposal, which would require companies to extensively document their related-party lending, until Jan. 1, 2018.

Trump

 

Other actions expected today include a memo that will require a review of the Financial Stability Oversight Committee’s designation process for systemically important banks and a review of the orderly liquidation authority granted to the Federal Deposit Insurance Corp. (FDIC) under Dodd-Frank. 

Under Dodd-Frank, the FDIC is granted the power to wind down the biggest banks but Trump's memo is expected to call for a study on whether enhanced bankruptcy authority is a better alternative for failing financial companies.

The 2010 financial-regulation law known as Dodd-Frank established a so-called orderly liquidation authority under which the Federal Deposit Insurance Corp. is empowered to untangle and wind down the biggest banks. Republican lawmakers have said the law doesn’t address the fact that Wall Street firms remain too big to fail, meaning taxpayers will still be on the hook for future rescues.

 

The U.S. House of Representatives earlier this month approved legislation to create a new bankruptcy process for financial companies with more than $50 billion in assets that could allow for a quick transfer of a failed bank’s assets and impose a temporary stay of some contractual rights to give the company time to restructure. The measure aims to address concerns that led lawmakers to approve taxpayer bailouts during the 2008 credit crisis. At the time, the structures of Wall Street banks were considered too complex to go through bankruptcy court.

The orders are expected to be signed around 3pm EST.

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hedgeless_horseman's picture

 

executive orders and memos targeting the reduction of tax regulations and certain components of Dodd-Frank

Targeting?

a memo that will require a review

A review?

I am Jack's complete lack of enthusiasm.


InjectTheVenom's picture

.

>>>>   Hillary for prison

>>>>   Assange for prison

Looney's picture

 

Trump has run out of things to flip-flop on. Soon, he’s gonna have to start flipping back.  ;-)

Looney

CryptBrain's picture

The Hillary for prison theme is over.  As soon as the inauguration was over Trump honored her, remember!  He didn't have to do that.  So why did he? 

Perhaps he was setting her up, or bluffing.  But again, if you remember during the same event, Rep. Chaffetz  climbed over other attendees to practically kissed her hand as she was walking out.  

Look.  It was a triumph that she did not win; and this is huge.  Also, he's still trickling in some small wins.

But.  As far as real substantial change to corruption, FFs, foreign entanglements, somethinggate, etc...  It ain't looking that way.

Unless of course he's planning a Valentines Day Massacre like event-- which is entirely possible.

The fact that the House Committee is plunging forward with more Russia lies to diver attention says that they are clearly worried. Which means that Trump is not yet in their pocket. 

Which means the game is not over for Trumps base. 

Also, even if Trump wanted to join the DS and turn his back on his eager base -- And I don't define base like sellout Bill Mitchell (A basic blind Trump forever fool) --Trump can't do that either.  If he losses his base, and that spreads across the districts where GOP members are up for reelection in 2018 he's toast -- He can not lose House majority. 

However he needs to put an end to Google and FB going after conservative outlets.  Antitrust case sounds so dam pretty.

If he lets these two social media corporations suppress and attack DS's opposition views,  by taking away advertising dollars its over fast.  Remember that without the hundreds of youtubers, twitter and FB members disseminating HC's fall on 9/11, Wiki emails, Donna Brasil and CNN links, Podiumgate on debate 3, etc...  She would have won.  DOJ must go after Google and FB.  MUST!

 

 

 

HRClinton's picture

Are you freaking retarded?  They'd have to build a new prison for all others who would have to go to jail also.

If you need to fantasize, buy a lottery ticket, visit a porn site, or go to church.

tmosley's picture

.

>>>> Hillary for a fair trial

>>>>Assange for a fair trial

^--More interesting poll.

Kayman's picture

"fair trial" 

Like, say, OJ Simpson fair?

When you own the judge and the prosecution, you know the outcome.

froze25's picture

I would like to see a rule change that Banks cannot hold a residential home for more than 1yr after it is foreclosed on, after 3 attempts at auction, opening bid is 1 dollar.

techpriest's picture

I'd like to see some rule changes that make small, local banks legal again.

pebblewriter's picture

Nice.  Sad that Ocwen, one of the worst of the foreclosure bad actors, is just now finally being penalized.

http://www.magnifymoney.com/blog/consumer-watchdog/ocwen-just-thought-co...

RockRiver's picture

Where in the constitution does it mention these executive orders presidents are so fond of these days?

Joe Davola's picture

By "these days" do you mean since George Washington?

Or the Emancipation Proclamation?

Or FDR's 3500+?

hedgeless_horseman's picture

 

Edicts are not new.  They have been around for centuries.

https://en.wikipedia.org/wiki/Edict

But they are often ineffective...

Joe Davola's picture

Took a long time from Diocletian for us to come up with the "Edict of $15 living wage".

hedgeless_horseman's picture

 

https://en.wikipedia.org/wiki/Reichstag_Fire_Decree

 

"What happened here was the gradual habituation of the people, little by little, to being governed by surprise; to receiving decisions deliberated in secret; to believing that the situation was so complicated that the government had to act on information which the people could not understand, or so dangerous that, even if the people could not understand it, it could not be released because of national security. And their sense of identification with Hitler, their trust in him, made it easier to widen this gap and reassured those who would otherwise have worried about it.

 

 

"This separation of government from people, this widening of the gap, took place so gradually and so insensibly, each step disguised (perhaps not even intentionally) as a temporary emergency measure or associated with true patriotic allegiance or with real social purposes. And all the crises and reforms (real reforms, too) so occupied the people that they did not see the slow motion underneath, of the whole process of government growing remoter and remoter.

 

 

http://press.uchicago.edu/Misc/Chicago/511928.html

BigFatUglyBubble's picture

https://en.wikipedia.org/wiki/General_Order_No._11_%281862%29

Ulysses S. Grant kicked out the cotton (((speculators))) then reversed it later

...having not honest means of support, except trading upon the miseries of their Country ... will leave in twenty-four hours or they will be sent to duty in the trenches."[

slyder wood's picture

Riiiiiight......article written by one (((Milton Mayer))).....

IridiumRebel's picture

Yes, but when do we start to bomb people?

NotApplicable's picture

Well, I would say "they" rather than "we," as I try not to identify with the criminal class.

Joe Davola's picture

Heh, I'm thinking of getting bombed tonight!

I am Jobe's picture

There ar ebrown people in Asia,Trump forgot that. Time to start wars in Asia , India, Pakistans, Indonesia. 

BigFatUglyBubble's picture

4h4 hours ago

China is very much the economic lifeline to North Korea so, while nothing is easy, if they want to solve the North Korean problem, they will
In Trump retard twaater langauge, that is a threat/ultimatum.
Nobodys Home's picture

I bomb people in the nursing home all the time.
Bomb = Applesauce, prunes, bran and Milk of Magnesia.

NoWayJose's picture

Dear Congress - please make these laws instead of EOs. If Bernie or Fauxcahontas win in 2020, they can reverse all of Trump's EOs!

Falconsixone's picture

Gotta be bad before they'll sign it. But the good news is they can't read.

apike3137's picture

"totally arbitrary"...oh NOW it's arbitrarty after all 45's claims of what he will get done in that time...

 

 

Mikeyy's picture

Tyler's Trump apologia continues apace.  Tyler needs to remove his nose from Trump's ass and be a little more objective.  Instead he's doubling down on the Trump flip-flop bs.

Jäger's picture

Trump fiddles while the middle-class burns

BigFatUglyBubble's picture

Mnuchin put disappearing ink in Trump's pen for comedic relief!

It's ok though because in a couple hours trump will forget what he signed anyway.

zzzz88's picture

less and less trust this bigly liar

Falconsixone's picture

Anyone know where I can buy good gloves cheap?

 

earleflorida's picture

trumps 100 day carnival of one/daily executive-orders,... a nuke'd`SOTHUS justice, four wars reignited, and not a POS legislation.

wow--- nice job donald!

you da man...

Mr T's picture

that could allow for a quick transfer of a failed bank’s assets 

Hmmmmmm, and to where would they be transferred? ???

Always leaving these minor details out.

Devil is in the details

polo007's picture

http://www.cnbc.com/2017/04/21/health-care-deal-language-could-come-as-e...

Health-care deal language could come as early as today, White House official says

Eamon Javers | Jacob Pramuk

1 Min Ago

The Senate Budget Committee is working on a draft version of language for a potential health-care deal, a White House official told CNBC.

The White House hopes the language can get sent Friday or Saturday, the official said.

Callz d Ballz's picture

a nothingburger...

WorkingPoor's picture

The basic idea is sound. it does not go far enough.

Mnuchin, for once and for all, needs to have a staff going over Glass-Steagel and bringing it into the 21st century, rebuilding the wall it once held between the investment and savings arms of a bank

The House needs to repeal Dodd-Frank, jerk it clean out, root, branch and stem. And burn it on top of those two worthless ones' desks.

Doing these things would show where their alleged alliegences in re: bankers are.

Pasadena Phil's picture

Repeal Dodd-Frank, Replace with Glass-Steagall.

StreetObserver's picture

Remember fellow Americans, if you have your money in a big bank, pull it out and put it in a smaller bank, here's why:

Part of Dodd Frank's fine print allows deriviatives, you know, the TRILLIONS of dollars in Wall Street casino bets, to be in line ahead of simple bank depositor's money already inadequately "insured" by FDIC insurance.

see this ZeroHedge article about that:

http://www.zerohedge.com/news/2017-04-21/why-big-banks-are-terrified-le-...

Smaller banks don't have derivatives in their portfolio and thus you are only inadequately covered by FDIC insurance, isn't that better?

Wells Fargo and Bank of America are the worst.

 

Fake Trump's picture

Trump is in damage control mode. 

FreeShitter's picture

They all have been since 1913. JFK tried to put a wrinkle in their plan, however.

djrichard's picture

Yay for tax relief on corporate inversions!

I personally can't wait to incorporate myself in Ireland.

IdioTsincracY's picture

Let's correct the opening of the article

As pressure mounts on Trump to post some more victories for Banksters and Oligarchs ....

there ...  fixed!