Donald Trump says he will Slash 70% of Regulations – What does that mean for us?!

By Jack J. Kelly

Donald Trump, the Republican candidate for President, reiterated his plans to decimate federal regulations in a town hall event held in New Hampshire last night.

Trump asserted that 70 percent of federal agency regulations could be eliminated due to their deleterious impact on businesses. “We are cutting the regulation at a tremendous clip. I would say 70 percent of regulations can go,” Trump said. “It’s just stopping businesses from growing.”

One of Trump’s campaign advisers, hedge fund manager, Anthony Scaramucci, previously claimed that Trump would eliminate only 10 percent of regulations.  “We need regulation but immediately every agency will be asked to rate the importance of their regulations and we will push to remove 10 percent of the least important,” to streamline regulations as a way to generate economic growth and help the flow of capital, Scaramucci told the press. He added, “Wall Street is not the devil. In fact we are at our best when there is harmony between Main Street and Wall Street and we hope to restore that.”

Scaramucci singled out several areas that Trump would look to for reforms:

–Labor Department rules expanding the fiduciary standard for financial brokers who sell retirement products would likely be stopped.

–Legislation similar to the former Glass-Steagall Act that limited the banking industry would be on the table for review.

— The Dodd-Frank banking reforms that emerged from the Great Recession of 2008-09 will be reviewed and “the worst anti-business parts of it will be gutted.”

— The Volcker rule will be adjusted. Named after former Federal Reserve Chairman Paul Volcker, it is part of the sweeping 2010 Dodd-Frank financial reform law. It aims to reduce risk-taking by preventing banks from using their own capital to make speculative bets.

I have mixed emotions about enacting significant regulatory cuts. As a free-markets Libertarian, I tend to dislike big government getting involved with all facets of our lives. However, as a hypocrite who earns his living recruiting and placing compliance professionals; regulations are very good for my business.

Regulations coupled with a vigorous and aggressive regulatory infrastructure create thousands of new jobs for Compliance professionals. Less rules and regulations result in hiring fewer Compliance people and ultimately companies will downsize these essential personnel since corporations will not need to worry about pesky laws. Also, the Compliance professional’s salary and bonus will materially decline too as the role will be deemed non-essential and irrelevant.  My paycheck, if anyone cares, will fall in tandem with this trend.

Also, aside from my own selfish interests, we must point out that with all the current laws, rules and regulations we have on the books, it is incredulous that we see continued egregious violations committed by Wall Street and all other industries. It is fairly reasonable to conclude that less regulations would only increase the amount of scandals. This would result in greater pollution of our environment, less safe medicine and foods, and even more scandals at the banks.

Putting everything else aside, most importantly, I would need to find a new job.