10/24/2018

DODD-FRANK/ECONOMY/TREASURY/TRUMP AS PRESIDENT: “Ten years after the financial crisis, President Donald Trump’s administration is reining in an agency that was set up to avoid a repetition of the historic crash by spotting new risks on the horizon. The Office of Financial Research, which was given the power to pull together granular data from across the financial system, has seen its budget slashed and is on pace to lose more than a third of its staff. The office, established under the landmark 2010 Dodd-Frank Act as an independent agency with the freedom to cite dangers, has sometimes faced blowback for its efforts. Five years ago, it sparked an uproar among asset managers by warning of potential threats posed by the multi-trillion-dollar industry. But now, the Treasury Department is increasingly taking over responsibility for crafting its research agenda — and, as a result, the office is doing a lot less. That has raised alarms among its supporters.”

Victoria Guida, “‘Early warning system’ for markets muzzled under Trump,” Politico, October 24, 2018 6:25 pm