President Trump Gives the Frank-Dodd Rule a Makeover

Welcome to Surelock Network Auctions’ February 2017 Newsletter. Although it’s only been a few weeks since our last one, there has been plenty of news to keep us interested, with US President of just two weeks, Donald Trump dominating headlines! The many who hoped the policies he touted during his campaign would soften, have so far been disappointed.

President Trump Gives the Frank-Dodd Rule a Makeover

In what has been described by some journalists as a gift to Wall Street, President Trump has rolled back the Frank-Dodd rule that was introduced under Obama. It was created to stop banks from creating new, complicated financial instruments that end up confusing investors and making the banks richer. Another regulation that he has tampered with, is the Fiduciary rule, that was created to protect retirees and their pensions from conflicts with stockbrokers.
Now, it seems, Wall Street and the banks are free, once again to employ new, unusual techniques in their quest to create growth for investors and even more for their own coffers, too. At the same time, the stockbrokers will now regain some protection, even when they’re in the wrong.
Stock markets rose on the news that saw the return of some financial freedom, even though it means the US financial system will not be in line with many global rules introduced since 2008 in order to limit the possibility of another, global financial meltdown.

THAT Immigration order

President Trump’s immigration order banning visitors from seven listed countries and halting the refugee programme for 90 days is another significant (understatement!) policy. While there are suggestions that some Americans agree with his decision, a recent poll from CNN showed 53% of respondents disapprove of the job Trump is doing so far, the highest level on record for a new President.
District judges and lawyers from Minnesota and Washington state, meanwhile, continue to do battle with the President in the courts, while Trump increasingly turns to Twitter. It’s a continuation of his election campaign style – but it probably wasn’t expected to continue at quite this frantic pace once he took office.
With the President currently seeming to be dead set on this particular policy, it looks likely to be an argument that will rumble on for some time. Right now, travellers are taking advantage of the open window and flying into the US. It’s a frenzy that could either settle quickly or remain for many months, in fits and starts, depending on what happens next.

There’s a LOT More to Come from Trump

Of course, the two details are among many possible topics we could have discussed. The Mexican border wall, the constantly decried ‘fake news’, changes to Obamacare, dismissing environmental rules and insulting both intelligence agencies and allies. And remember, this has all happened in just two weeks!

With so much happening in the US at the moment, there are certainly going to be lots of opportunities for profit and loss in stocks and shares, for investors. If you like a risky investment and are willing to take it for the potentially high rewards, then great. If, however, you’re more risk averse, then UK property remains the perfect place for your money.

The UK Government’s long-awaited and much delayed housing white paper will show a shift from supporting home-ownership to supporting affordable rental homes for families. With that on the horizon, it’s worth keeping up with our upcoming property auctions to see what opportunities there are to buy and add to the private rental sector. But, do keep on top of any potentially new regulations regarding length of tenure and price guarantees.
And, if you’re in need of a reminder of why you’re sticking with property, just do a quick google search on President Trump – we’re sure the reams of headlines it brings up, will be enough to encourage you to stay away from the stock market!

We hope you enjoyed Surelock Network Auctions’ thoughts on the issues discussed in our latest newsletter. If you want to keep up-to-date with Surelock’s auction dates visit our website and to keep abreast of our news and views, take a look at the blog section.
We welcome any comments on the points we have mentioned, or any questions at all, even about a property you are interested in that isn’t listed at one of our auctions. Additionally, if you want to share your own views on another topic, please contact us. You can get in touch by responding to this email, tweeting us @KhalidAuctions or commenting on the blog section of the Surelock Network Auctions website.

1 Comment. Leave new

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August 5, 2017 11:12 am

But he’s been clear he believes the Volcker rule should be simpler and may have gone too far in reducing trading. The administration also refrained from diving into its plans to scrap a Dodd-Frank provision that gives the government power to unwind failing banks.

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