Skip to main content

View Diary: Elizabeth Warren warns of perils in 'Wall Street shuffle' (52 comments)

Comment Preferences

  •  SIFMA loves it. (3+ / 0-)
    Recommended by:
    orlbucfan, Jim P, jabney

    If the top Wall Street lobbying group loves it, well, it can't be that good for us.

    And it enshrines "too big to fail" into law. By extension, too big to fail is also too big to prosecute.

    Professor David Skeel of the University of Pennsylvania Law School claims that the two main problems with Dodd-Frank are  “(1) government partnership with the largest financial institutions and (2) ad hoc interventions by regulators rather than a more predictable, rule-based response to crises.”

    More from Skeel can be found in his book: The New Financial Deal: Understanding the Dodd-Frank Act and Its (Unintended) Consequences.

    Dodd-Frank harms small banks, community banks, and credit unions by making compliance difficult and uncertain, while helping the largest banks by allowing them to borrow money at lower rates.

    Regulatory agencies in charge of overseeing this complex bill claim they don't have nearly the budget or manpower to enforce it. As it allows regulators much leeway and discretion in enforcement, it is also ripe for regulatory capture.

    In short, while it does some good, it is by no means a perfect bill.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site