President-elect Donald Trump has been a harsh critic of Dodd-Frank and its impact on the financial sector. But Rafferty Capital Markets Banking Analyst Dick Bove suggested Trump could work with the Federal Reserve to improve the relationship between the government and the banks, and boost the long-term growth of the sector without repealing Dodd-Frank.
â€œI know all the focus is on what Mr. Trump is going to do on the Supreme Court, but think about the Federal Reserve,â€ Bove told the FOX Business Networkâ€™s Stuart Varney.
Bove explained that Trump will have an opportunity to put four new people onto the Federal Reserve board, â€œand if he can move Mr. Tarullo out, who I think is a socialist and anti-American, if he moves him out, then basically [Trump] got five of the seven people on the Fed.â€
Once those five people are in place at the Fed, Bove viewed a dismantling of Dodd-Frank as unnecessary.
â€œOnce you put five of the seven people on the Fed, you donâ€™t have to worry about getting rid of Dodd-Frank, you shouldnâ€™t waste your time doing that. You have to change all these little rules and every rule that you change does exactly what you want. It gives you a relationship between government and the industry which is positive, pro-growth, capitalist, which is what we havenâ€™t seen for eight years,â€ he said.