President Donald Trump is expected to sign an executive order on Friday to cut back on the Dodd-Frank financial reforms, which were put in place after the global financial crisis of 2008. The law was passed during the Obama administration in 2010 as a way to prevent a future financial crisis.
"I've always felt that Dodd-Frank went too far," said TheStreet's Jim Cramer from the floor of the New York Stock Exchange. He is in favor of overturning the law as it was "never the way to go."
The real issue has always been raising capital, Cramer claimed. The best route is to ensure banks have enough capital and to oversee them in a way that prevents recklessness.
"Banks were thinly capitalized. You raise the capital and then you follow existing rules and you audit these banks and you're tough on the banks in terms of their capital, and that allows them to land," he argued.
Trump is also expected to halt the fiduciary rule, which requires financial advisers to put clients' interests ahead of their own.
"I wish they wouldn't get rid of that," Cramer said. "I thought that that was a meaningful piece of change that would make it so that people would not be jammed with the wrong products."