In response to a recent Executive Order from president Trump outlining “Core Principles” for financial regulation and seeking suggestions for streamlining financial regulation, the LSTA submitted a letter to Treasury Secretary Mnuchin.  The letter outlines why the application of the Dodd-Frank risk retention provides no benefits but causes substantial harm to borrowers, investors, managers and, ultimately consumers, by restricting the flow of capital to American companies.  The LSTA identifies three avenues to reform and proposes that the SEC, as the agency that regulates the vast majority of managers, has the ability to exercise its authority to waive the risk retention rules for CLO managers.