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Trump’s economic leaders promise major changes to Dodd-Frank

Steven Mnuchin.Mike Segar/REUTERS

Key members of Donald Trump’s economic team are promising major changes to the 2010 Dodd-Frank law Congress passed to prevent another financial crisis.

Critics say the law went too far to hinder banks from making loans that people and businesses need to spend and hire.

The president-elect’s pick for treasury secretary, Steven Mnuchin, says loans are ‘‘the engine of growth’’ for small- and medium-sized businesses, and that the fallout from Dodd-Frank has been a cutting back on lending.

Mnuchin tells CNBC’s ‘‘Squawk Box’’ that the incoming administration wants to ‘‘strip back parts of Dodd-Frank that prevent banks from lending, and that'll be the number one priority on the regulatory side.’’


And Trump’s choice for commerce secretary, financier Wilbur Ross, blames the law for putting banks in a position where he says ‘‘they now have more compliance people than they have lending officers.’’

The choices of Mnuchin and Ross were confirmed by Trump’s transition team in a press release Wednesday morning.