Alan Greenspan, the former Federal Reserve Chairman Alan Greenspan appointed by President Ronald Reagan, said the stock market is rising on the chance that banking laws enacted after the 2008 financial crisis will be thrown aside.
The S&P 500 rose more than 12 percent after President Donalg Trump won the November election on a pro-business platform of tax cuts, less regulation and spending on roads, bridges and airports. After reaching a record high in March, stocks stalled out after the Republicans withdrew a plan to change the healthcare law, casting doubt on Trump’s other pledges.
Greenspan said lawmakers should abandon the Dodd-Frank Wall Street Reform and Consumer Protection Act, which President Barack Obama signed into law in 2010 as a way of requiring banks to have more money to handle a crisis.
“If you get rid of Dodd-Frank, it’s going to have a very significant positive impact on the economy,”