1 00:00:00,080 --> 00:00:02,960 Speaker 1: Now it's time for our daily Bloomberg Law Brief, exploring 2 00:00:03,040 --> 00:00:05,320 Speaker 1: legal issues in the news. It's brought to you by 3 00:00:05,360 --> 00:00:10,480 Speaker 1: American Arbitration Association, International Trade or Business Dispute Resolve Fast 4 00:00:10,640 --> 00:00:13,960 Speaker 1: with the International Center for Dispute Resolution, the leader in 5 00:00:14,040 --> 00:00:17,480 Speaker 1: alternative dispute resolution around the world. I see d R 6 00:00:17,680 --> 00:00:21,080 Speaker 1: dot org. Today, Bloomberg Lah host joom cross So discusses 7 00:00:21,079 --> 00:00:23,959 Speaker 1: a new Treasury Department report which lays out how the 8 00:00:23,960 --> 00:00:27,520 Speaker 1: Trump administration plans to overhaul bank rules. She speaks with 9 00:00:27,600 --> 00:00:32,040 Speaker 1: Nathan Dean, a government analyst for Bloomberg News. Nathan, what 10 00:00:32,200 --> 00:00:35,559 Speaker 1: is some of the most important parts of the plan? So, 11 00:00:35,920 --> 00:00:38,040 Speaker 1: I think the most important part of the plan is 12 00:00:38,080 --> 00:00:41,000 Speaker 1: the recognition that Treasury knows that they can roll back 13 00:00:41,000 --> 00:00:44,040 Speaker 1: dot frank via the regulatory process, and they highlight this 14 00:00:44,120 --> 00:00:47,440 Speaker 1: report was only for the depository institutions, so it talked 15 00:00:47,440 --> 00:00:50,120 Speaker 1: about things like capital requirements, the vocal rule. But what 16 00:00:50,200 --> 00:00:52,640 Speaker 1: the report laid out was is that you know, we 17 00:00:52,760 --> 00:00:55,120 Speaker 1: can gut or we can you know, tweak a lot 18 00:00:55,120 --> 00:00:57,720 Speaker 1: of dot frank via the regulatory process, and we can 19 00:00:57,760 --> 00:01:01,040 Speaker 1: do it without Congress's input. And so I think it's 20 00:01:01,080 --> 00:01:04,000 Speaker 1: a great blueprint. It can show the path of DoD frank. 21 00:01:04,680 --> 00:01:06,880 Speaker 1: But you know, just just to remember that it takes 22 00:01:06,880 --> 00:01:09,320 Speaker 1: the financial regulators to actually implement this, and that's going 23 00:01:09,360 --> 00:01:11,959 Speaker 1: to take a lot of time. So tell us some 24 00:01:12,160 --> 00:01:16,320 Speaker 1: of the major rules that it's aimed at. So this 25 00:01:16,400 --> 00:01:20,319 Speaker 1: report really put in great detail a lot about capital 26 00:01:20,360 --> 00:01:23,319 Speaker 1: requirements and liquidity requirements, so uh. It called for the 27 00:01:23,319 --> 00:01:26,959 Speaker 1: net stable funding ratio proposal to be indefinitely delayed. It 28 00:01:27,080 --> 00:01:31,120 Speaker 1: changed called for changes to how the liquidity coverage ratio 29 00:01:31,240 --> 00:01:34,400 Speaker 1: is put in place, all these big bank capital requirements. 30 00:01:34,600 --> 00:01:36,880 Speaker 1: You know, in the United States, there's a lot of banks. 31 00:01:37,080 --> 00:01:39,560 Speaker 1: There's eight banks that are considered g SIPs uh, and 32 00:01:39,600 --> 00:01:41,960 Speaker 1: they have this additional g SIP surcharge. And so the 33 00:01:41,959 --> 00:01:44,480 Speaker 1: Treasury reports said that we're going to ask the regulators 34 00:01:44,480 --> 00:01:47,120 Speaker 1: to look into this. Now we expect those rules to 35 00:01:47,160 --> 00:01:50,080 Speaker 1: be tweaked over time. But you know what, one one 36 00:01:50,120 --> 00:01:52,000 Speaker 1: thing the report didn't do is it just said didn't 37 00:01:52,000 --> 00:01:54,200 Speaker 1: get it. Didn't say just get rid of the rules. 38 00:01:54,240 --> 00:01:56,840 Speaker 1: And so this was a very measured and I think 39 00:01:56,920 --> 00:01:59,240 Speaker 1: reasonable approach to how they're going to tackle dot frank. 40 00:01:59,560 --> 00:02:01,560 Speaker 1: But again, the downside to the report is it's going 41 00:02:01,640 --> 00:02:04,320 Speaker 1: to take years to implement all this. How is it 42 00:02:04,400 --> 00:02:07,600 Speaker 1: different from the bill passed by the House Republicans last week. 43 00:02:07,840 --> 00:02:09,480 Speaker 1: So the bill that was passed last week is the 44 00:02:09,480 --> 00:02:11,760 Speaker 1: House Financial This is the Financial Choice Act. It was 45 00:02:11,800 --> 00:02:14,440 Speaker 1: the kitchen sink bill. Uh. You know, this was the 46 00:02:14,440 --> 00:02:16,560 Speaker 1: one that would gut dot frank. And so there are 47 00:02:16,560 --> 00:02:18,840 Speaker 1: a lot of elements in here that the Democrats just 48 00:02:18,880 --> 00:02:21,000 Speaker 1: won't go with. And that's why this bill is dead 49 00:02:21,040 --> 00:02:24,640 Speaker 1: on arrival when it goes to the Senate. This report said, okay, fine, 50 00:02:24,680 --> 00:02:26,960 Speaker 1: so we're gonna keep dot frank as it is, but 51 00:02:26,960 --> 00:02:29,119 Speaker 1: we're gonna look at the regulations that have been put 52 00:02:29,120 --> 00:02:31,320 Speaker 1: in place under dot Frank, and we're gonna ask the 53 00:02:31,320 --> 00:02:34,520 Speaker 1: regulatory agencies, which by mid two thousand eighteen are gonna 54 00:02:34,560 --> 00:02:37,600 Speaker 1: be under Donald Trump's influence. We're gonna ask the regulators 55 00:02:37,639 --> 00:02:40,400 Speaker 1: to look at these regulations and begin tweaking things to 56 00:02:40,440 --> 00:02:43,320 Speaker 1: make it a little bit better. This Treasury report essentially 57 00:02:43,680 --> 00:02:45,640 Speaker 1: was something that both the big banks and the small 58 00:02:45,639 --> 00:02:48,800 Speaker 1: banks like. Uh. And so it's it's something that I 59 00:02:48,800 --> 00:02:51,320 Speaker 1: think the industry expects to happen. It's just gonna take 60 00:02:51,320 --> 00:02:54,280 Speaker 1: a lot of time. Y's Nathan being a government analyst 61 00:02:54,320 --> 00:02:56,760 Speaker 1: for a Bloomberg News. Speaking at the Bloomberg Law host 62 00:02:56,840 --> 00:02:59,480 Speaker 1: Judent Grosso. You can listen to Bloomberg Law weekday said 63 00:02:59,520 --> 00:03:02,800 Speaker 1: one pm Wall Street Time here on Bloomberg Radio Now. 64 00:03:02,800 --> 00:03:05,400 Speaker 1: Among the top legal stories from Bloomberg Law, get ready 65 00:03:05,400 --> 00:03:07,320 Speaker 1: to hear the E word a lot today in this 66 00:03:07,400 --> 00:03:11,000 Speaker 1: case emolument. Almost two hundred Democratic members of Congress have 67 00:03:11,040 --> 00:03:13,880 Speaker 1: agreed to file a lawsuit against President Trump today. They'll 68 00:03:14,000 --> 00:03:17,120 Speaker 1: argue that by retaining interests in his global business empire, 69 00:03:17,200 --> 00:03:21,440 Speaker 1: he's violating constitutional restrictions against taking gifts and benefits from 70 00:03:21,480 --> 00:03:24,320 Speaker 1: foreign leaders. Maryland and the District of Columbia have file 71 00:03:24,400 --> 00:03:27,919 Speaker 1: a similar lawsuit. Meanwhile, the Supreme Court hints it could 72 00:03:27,960 --> 00:03:31,639 Speaker 1: take action late this month on President Trump's proposed travel ban. 73 00:03:32,080 --> 00:03:34,440 Speaker 1: Justices are calling to be briefed on the issue by 74 00:03:34,520 --> 00:03:37,680 Speaker 1: June twenty one. Then they could decide the next day 75 00:03:37,720 --> 00:03:40,840 Speaker 1: whether to hear the administration's arguments against a lower court 76 00:03:40,920 --> 00:03:44,880 Speaker 1: rulings blocking the ban. And that's this morning's Bloomberg Law Brief. 77 00:03:44,880 --> 00:03:47,240 Speaker 1: You can find more legal news at Bloomberg Law dot 78 00:03:47,240 --> 00:03:51,040 Speaker 1: com and Bloomberg b Na dot com. Attorneys will find 79 00:03:51,040 --> 00:03:54,240 Speaker 1: exceptional legal research and business development tools there, as well. 80 00:03:54,640 --> 00:03:57,960 Speaker 1: Visit Bloomberg law dot com and Bloomberg b NA dot 81 00:03:58,000 --> 00:03:59,360 Speaker 1: com for more information.