President Trump - Savage Villoch Law

Debate Over Trump’s Travel Ban Heats Up

Savage Villoch Law, PLLC — Fri, 26 May 2017 15:00:30 GMT

This week, a U.S. appeals court elected not to reinstate President Trump’s controversial travel ban. The decision by the appeals court moves the debate closer to the Supreme Court, as the issue gets more contentious. The order called for a restriction on travel for people from six countries with a majority Muslim population. It caused a great amount of fervor when it was rolled out in January, due to it’s hap-hazard execution as well as its seemingly discriminatory language. If you’ve been following the story, you know that it caused outrage and mass confusion at many U.S. airports as visa-holders from these countries were detained or denied entrance into the country. The poor roll-out was the initial reason for a judge in Hawaii to strike it down. The second order, while much in the same vein as the first, sought to correct the legal disparities of the initial ban, however that was also blocked by a Maryland judge before it could take effect.

Appeals Court Rejects ‘Travel Ban’

As stated in the majority ruling by the appeals court, the second travel ban was a thinly veiled attempt at pushing through the initial order. The Virginia-based appeals court blocked the order in a 10-3 ruling. Currently, the initial travel ban order blocked by a Hawaii judge is being heard by another appeals court in San Francisco. As the debate over the order heats up, it inches the case closer and closer to the Supreme Court. If this happens it could mean a monumental reconsideration of this country’s balance of governmental power. A Supreme Court case would necessitate a review of executive, judicial, and legislative reach. While the president’s powers to deny aliens is extensive, it is not absolute.

Immigration News

We will keep you updated as the order continues to move through the appeals process. Check our blog for latest updates on the travel ban and other immigration news.

Stock Market Growth Continues Under ‘Trump Trade’

Savage Villoch Law, PLLC — Fri, 10 Feb 2017 15:00:57 GMT

U.S. stock markets continue to rally this week amid optimism around President Trump’s economic plans. Reaching a historic high on Monday, S&P 500 topped $20 trillion. This latest rally is a part of the ongoing boost stock market indices have been enjoying as economists wait for the Trump Administration to roll out its economic plan. Despite a slight stall last week, the stock market has a renewed optimism, with financial and industrial stocks benefiting most from the ‘Trump trade’. Despite stock market optimism from Wall Street, economists remain wary of the President’s economic plan. According to a Reuters report, some experts are starting to express concern over when he will actually introduce his plan.

What’s Helping Stock Market Growth

Of the two stock market indices that are performing highest under the ‘Trump trade’, financials and industrials, this is due to the two consistently repeated points of rhetoric that Trump has been using since his election:

Widespread banking deregulation
Increased infrastructure spending

With his promise of deregulating U.S. banking practices, financial stocks are soaring on optimism for lax regulation. President Trump has made it clear that a major revisitation of Dodd-Frank is necessary. Established in 2010, Dodd-Frank is the main legislative force for banking regulation. President Trump has also consistently referred to his plan to increase infrastructure spending, to the boon of industrial stocks post-election. The Trump Administration has made clear it’s intent to promote and encourage U.S. manufacturing, hoping to kick-start another industrial boom.

Uncertain Future for Stock Market?

Despite the dominating conditions, experts remain skeptical. There are several factors that hinder future stock market growth or cause a reversal:

Yet-to-be-seen economic plan
Global economic factors

Experts have expressed concern that despite the promises and optimism, this has yet to translate to an actual economic plan. U.S. markets are also tied in heavily with the global economy. It is unclear whether a separation from that may affect the stock market negatively.

Dodd-Frank Cuts Likely Under Banking Regulation Reviews

Savage Villoch Law, PLLC — Fri, 03 Feb 2017 17:00:17 GMT

Uncertain Future for Dodd-Frank

Last week, President Trump ordered a review of major banking regulations put in place following the 2008 financial crisis, largely comprising Dodd-Frank regulations. President Trump has made clear that rollbacks are a main objective for these reviews. Though the executive order only calls for a review, the Trump administration aims to make major cuts to banking regulations, largely affecting Dodd-Frank’s enforcement measures: Volcker Rule and the Consumer Financial Protection Bureau (CFPB). Here is an overview of the two main components of the Dodd-Frank banking regulations and what it means if they are cut:

The Volcker Rule

A big part of Dodd-Frank, the Volcker Rule raises capital requirements for banks and limits trading abilities. Banks are restricted from certain investment activities using their own accounts and also from retaining control over covered funds. The Volcker Rule acts to prevent speculative trading. If cut, big banks could be free to make unstable investment decisions.

Consumer Financial Protection Bureau

Another major component of Dodd-Frank, the CFPB was established by congress as a means of hands-on banking regulation and enforcement. The CFPB acts to protect consumers from aggressive and predatory investment banking and trading practices. In addition to taking legal action against unfair and deceptive practices, the CFPB also serves as an educational resources for consumers and investors. If cut, banking regulation could once again become largely decentralized and unable to accurately oversee banking practices.

Effects

Bankers and lenders laud President Trump’s decision to review current financial regulation under Dodd-Frank. Wall Street saw a noticeable bump in banking stock prices following Friday’s announcement. Despite lender and broker-dealer optimism, many consumers and regulators worry that loosened regulations will lead to a financial relapse and market crash.

Educational Resources

See this report from Reuters for more info on President Trumps order for regulatory review
Find out more about the CFPB by visiting their website
Get more consumer news and tips by checking out our past blogs