Alan Greenspan thinks it will be “nearly impossible” to repeal Dodd-Frank

Ex-Fed chair believes the law has been bad for the US economy

Alan Greenspan (Credit: Getty Images)
Alan Greenspan (Credit: Getty Images)

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.

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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.

In late November, The Real Deal explored how Trump could shake up real estate finance as president. [PERE] — Gabrielle Paluch

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