Jessica Fino 3 Feb 2017 04:13pm

Trump plans to scale back Dodd-Frank regulations

US president Donald Trump is expected to start scaling back the Dodd-Frank financial services regulations, according to reports

Gary Cohn, White House National Economic Council director and former president and chief operating officer at Goldman Sachs, told the Wall Street Journal that Trump aims to sign an executive order with plans to start undoing the regulations.

Barak Obama set out the Dodd-Frank rules in 2010 in response to the financial crisis. It was designed to prevent financial institutions from acting in an irresponsible manner, and avoid another global economic crash.

Cohn told the newspaper, “Americans are going to have better choices and Americans are going to have better products because we’re not going to burden the banks with literally hundreds of billions of dollars of regulatory costs every year.

“The banks are going to be able to price product more efficiently and more effectively to consumers,” he said.

Earlier this week, Trump signed an executive order aiming to reduce regulations and control regulatory costs for businesses.

The US president said the order was “biggest such act that our country has ever seen” and claimed the Dodd-Frank regulations were a “disaster”.

“We’re going to be doing a big number on Dodd-Frank. The American dream is back,” he told reporters in the Oval Office at the time.

Also on Friday, Travis Kalanick, Uber’s chief executive, told his staff he was quitting Trump’s economic advisory council.

In an email seen by the Guardian, Kalanick said, “Earlier today I spoke briefly with the president about the immigration executive order and its issues for our community.

“I also let him know that I would not be able to participate on his economic council.

“Joining the group was not meant to be an endorsement of the president of his agenda but unfortunately it has been misinterpreted to be exactly that.”

The announcement came a week after Kalanick tweeted that he was going to use its position on the economic council to “stand up for what is right”.

But his decision to join the advisory group has sparkled controversy and prompted 200,000 users to cancel their accounts.