The Republicans have reiterated their commitment to dismantling the Dodd-Frank Act in the first year of the Trump Administration.
House financial services committee chairman Jeb Hensarling said the act’s regulations “give Wall Street a competitive advantage over community banks and credit unions” in a statement published on Thursday.
“Replacing the Dodd-Frank mistake is necessary if we ever hope to enjoy a healthy economy and make America great again,” he said.
Hensarling previously told CNBC’s Final Bell that dismantling the act was a first-year priority for the administration, although it wouldn’t be tacked in the first 100 days.
Lawyers and compliance managers in the private funds sector have expressed doubt the Republicans can deliver on the promise due to the complexity of the act.
Speaking at the Private Equity International CFOs & COOs forum in New York last week, one compliance officer said it would be hard to fully reform regulation, while a second said it is “unrealistic” to expect the Dodd-Frank Act to be dismantled.
“There may be some favorable adjustments [for private equity firms] to acknowledge the asset class has nothing to do with the global economic crisis,” he added.