Banks lifted after Trump eyes Dodd-Frank haircut

Banks and insurers look set for a boost after president Donald Trump fired off stronger rhetoric about a “very major haircut” for “horrendous” US banking regulations.

Trump is attempting to cut back banking and consumer protection rules introduced by Barack Obama in the wake of 2008’s financial crisis.

“We’re going to do a very major haircut on Dodd-Frank,” the President said.

The Wall Street regulation is aimed at stopping banks from being ‘too big to fail’ by making them separate their investment and commercial businesses and hold higher capital reserves to avoid collapse. “We want strong restrictions, we want strong regulation. But not regulation that makes it impossible for the banks to loan to people that are going to create jobs,” Trump said.

“We’re going to be doing things that are going to be very good for the banking industry so that the banks can loan money to people who need it.”

Shares in banks and insurance groups rallied in London after Trump suggested the start of a review into dismantling the Dodd-Frank regulations last month.

“Dodd-Frank has made it impossible for bankers to function,” Trump said last May.