Today seems to be “National Pick on Dodd-Frank Day”. Perhaps it should be added to the list of federal holidays. The editors of Bloomberg get the ball rolling with the complaint that Dodd-Frank isn’t doing anything:
Four years after President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law, polling suggests that most Americans think it hasn’t done enough to protect them from a repeat of the 2008 financial crisis, a disaster from which the global economy has yet to fully recover.
Unfortunately, they’re right.
while Peter Wallison whinges that it’s doing far too much:
When the Dodd-Frank Wall Street Reform and Consumer Protection Act took effect on July 21, 2010, it immediately caused a sharp partisan division. This staggeringly large legislation—2,300 pages—passed the House without a single Republican vote and received only three GOP votes in the Senate. Republicans saw the bill as ObamaCare for the financial system, a vast and unnecessary expansion of the regulatory state.
Four years later, Dodd-Frank’s pernicious effects have shown that the law’s critics were, if anything, too kind. Dodd-Frank has already overwhelmed the regulatory system, stifled the financial industry and impaired economic growth.
According to the law firm Davis, Polk & Wardell’s progress report, Dodd-Frank is severely taxing the regulatory agencies that are supposed to implement it. As of July 18, only 208 of the 398 regulations required by the act have been finalized, and more than 45% of congressional deadlines have been missed.
The effect on the economy has been worse. A 2013 Federal Reserve Bank of Dallas study showed that the GDP recovery from the recession that ended in 2009 has been the slowest on record, 11% below the average for recoveries since 1960.”
I don’t think that either opinion piece sees the big picture here. Dodd-Frank is clearly a jobs program. Full employment for federal bureaucrats. It’s an overwhelming success. Heckuva job.
That under Dodd-Frank we’ve seen a constant progression towards increasing centralization of the banking industry into the hands of an ever-shrinking few “too big to fail” banks does not seem to concern anyone. You can’t make an omelet without breaking eggs, can you?