National Taxpayers Union President Pete Sepp on Friday issued a statement following the executive order from President Donald Trump related to financial institutions:
“President Trump’s Executive Order gives hope that a new era of freedom and competition is coming for banking and its customers; translating that hope to genuine progress will require thoughtful and persistent work.
Eliminating the words “reputational risk” from regulators’ vocabulary is an important recognition that investors and consumers, not the government, are the best judges of where to conduct their banking business. The White House and Congress should bear this principle consistently in mind, however, and avoid the temptation to set precedents that could allow future governments to engage in political retaliation. An unscrupulous liberal administration could weaponize some provisions in this EO to require banks to do business with certain customers simply because they support left-wing causes.
Despite this need for caution, this step forward should encourage President Trump and Congress to tackle major regulatory relief and reform for a financial sector long overburdened by big government. This means scrapping ill-fitting rules from the Biden era (like those associated with Basel Endgame and crypto), putting guardrails on the bank examination process (as harsh and arbitrary as any IRS audit), maintaining safety and soundness protections for taxpayers, and safeguarding consumer privacy.
For far too long, government has been the problem, not the solution, to more affordable, accessible, and competitive banking that grows our economy. Taxpayers are looking forward to the next chapter of smart financial services policy—let’s start writing it.”