Cohn, the ex-Goldman exec who is now advising President Trump, said he generally favors banking going back to how it was when "firms like Goldman focused on trading and underwriting securities, and companies such as Citigroup Inc. primarily issued loans". Some are already suspicious that it will allow Goldman to get rid of the Dodd-Frank "Hotel California provision" and finally relinquish its restrictive Bank Holding Company status.
For instance, Cohn’s former firm, Goldman Sachs, became a bank holding company during the financial crisis to get access to low-interest loans at the Federal Reserve’s discount window. Now it would love to be rid of that status, but it can’t because of a provision in Dodd-Frank that prevents it. (It’s nicknamed the Hotel California provision.) Banks would like to get rid of another component of Dodd-Frank, the Volcker Rule, which restricts their ability to trade securities using their own money. They would like lower capital requirements. And so on. Reintroducing Glass-Steagall allows the Trump Administration to say that it is simplifying banking regulation while protecting depositors and taxpayers. And since the too-big-to-fail problem is finally taken care of, there is no further need for much of the 2,000-plus-page Dodd-Frank law