Is Dodd-Frank Wall Street Reform Legislation a Hoax?
Wall Street has had outsize influence with President Obama (Eric Holder as Attorney General; Mary Jo White as head of the SEC; and others), with great benefit to Wall Street. Pam Martens and Russ Martens report in Wall Street on Parade:
The problem with stereotyping Republicans is that when they are screaming from the rooftops about a legitimate fraud, Democrats don’t believe them — even when the evidence is overpowering that they are right.
For years now, Republicans have been screaming that the Dodd-Frank Wall Street Reform and Consumer Protection Act that was signed into law in 2010 by President Obama is a fraud on the public.
Few have examined Dodd-Frank’s failed promises as carefully as Wall Street On Parade. The legislation promised to rein in derivatives – it didn’t. It promised to end the future need for taxpayer bailouts of too-big-to-fail banks. It didn’t. It promised to institute the Volcker Rule to prevent banks from gambling with insured deposits. It didn’t. It promised to reform the practices of the ratings agencies that played a pivotal role in the 2008 collapse. It didn’t.
Dodd-Frank did two great things: it created the Consumer Financial Protection Bureau (CFPB) which has played a major role in exposing and disciplining companies that abuse consumers in areas like credit cards, auto loans, student loans, and mortgages. Dodd-Frank also created the Office of Financial Research in the U.S. Treasury Department – which has been sending out regular warnings that Wall Street is still adangerous, toxic brew of interconnectedness while putting a bright light on how the Fed is mismanaging its stress tests of the mega Wall Street banks.
But these two agencies which are valiantly working in the public interest are no match for how Wall Street has been allowed by the Obama administration to game the designed-to-be-gamed provisions of Dodd-Frank.
Take this morning’s news from Bloomberg News. . .
Note this, later in the column:
Wall Street is clearly counting on their heavy funding of Hillary Clinton’s campaign to put a friendly ear in the Oval Office, and at the Fed, Treasury and SEC, so it can individually apply for permanent exceptions to these and various other Dodd-Frank rules.
I never once thought those enormous payments to Hillary Clinton were for nothing more than her giving a speech.
By all means, read the whole thing. The Obama Administration has been remarkably considerate of Wall Street.