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Trump budget envisions $35-bn savings on Wall Street regulations rollback

Rolling back of Dodd-Frank financial reform bill would save $24 billion over a decade

Reuters 

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President Donald Trump's FY18 budget is seen printed at the Government Publishing Office in Washington, US. Photo: Reuters

US President Donald Trump's proposed budget estimates that the federal government could save $35 billion over the next decade by rolling back regulations governing

The does not detail how those savings, which are equivalent to the annual economic output of the Democratic Republic of Congo, would be realised. But the administration said an ongoing review of existing financial rules "will likely result in proposals that will provide significant savings to the federal government."

While it is not expected to be passed by Congress, the financial year (FY) 2017-18 budget unveiled by the on Tuesday hews closely to Trump's view that slashing would boost the

Treasury Secretary is currently conducting a comprehensive review of the impact of the 2010 financial reform legislation. An initial report recommending policy changes is expected to come at the beginning of June.

The White House's projected savings from easing financial rules exceed estimates offered by the Congressional Budget Office. That policy scorekeeper calculated that $24 billion would be saved over a decade if a broad rollback bill currently in the House of Representatives were passed.

Most of those savings identified by CBO come from eliminating a provision allowing the government to step in and wind down failing financial institutions, and by placing tighter control over the funding of the (CFPB), which was set up to protect consumers from predatory lending.

Trump's budget would give control of funding that agency to Congress, a policy change sought by Republicans eager to rein it in. Currently, the gets its funding from the Federal Reserve.

The estimates that moving oversight of the to Congress would save the federal government $6.8 billion over a decade. However, the budget proposal does not account for any funds appropriated to the beyond FY18.

The Office of Financial Research, also created by to gather data on financial markets, is facing a 28 per cent budget cut under the new plan.

The Commodity Futures Trading Commission and would see their budgets hold steady at $250 million and $1.6 billion, respectively, under the new budget.

The is pushing for an additional $31 million in funding in its own budget request.

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