NEW YORK — U.S. President Donald Trump is expected to sign legislation Friday that will require all U.S.-based banks to allow the government to freeze their assets and create an emergency fund.
Trump’s signature would mark the first step toward a new era of bank regulation.
In a speech last week, Trump vowed to rein in banks that he called too big to fail, including Wells Fargo and Bank of America.
But he has not offered a detailed outline for the legislation, which he could sign without a vote.
“This is going to be a new, bold, and transformative bill that puts Americans first,” Trump said at a news conference on Friday.
The president, who has already threatened to impose tariffs on banks and other financial institutions, is expected on Friday to sign the bill into law, according to the White House.
It would allow for the government’s first such freeze on assets, which Trump called “too big to jail.”
The White House did not immediately respond to a request for comment.
Wells Fargo, which has faced multiple lawsuits over its role in the 2008-09 financial crisis, is among the biggest financial institutions to have been hit by the financial crisis.
The bank is expected also to face legal challenges from the government.