Alan Greenspan, the 90 year-old former Federal Reserve chair, doesn’t think Donald Trump would be able to completely dismantle and repeal Dodd-Frank even if he tried.
The comments were made at the Private Equity International CFO & COO’s Forum in New York on Wednesday.
“The complexity of unwinding such regulation embedded in the system makes it nearly impossible. The Trump administration might take half of it down, but I don’t think that’s enough,” Greenspan told attendees at the forum, Private Equity Real Estate reported.
Greenspan, who chaired the Federal Reserve from 1987 to 2006, said if incoming President Trump managed to repeal the act, it would be a “remarkable event.”
Though he’s not a fan of the landmark law, Greenspan conceded that there was one positive element: increased capital requirements. A requirement of 20 percent of capital retained rather than invested should remain, according to Greenspan.
A Dodd-Frank repeal would likely have a bigger impact on the residential market, where the law has added a number of safeguards against reckless and predatory lending.