Tuesday, July 22, 2014

Did Dodd-Frank Work?

Joe Nocera, NYT
JULY 21, 2014

Ralph Nader has written a new book, entitled “Unstoppable: The Emerging Left-Right Alliance to Dismantle the Corporate State.” If you spend any time looking into the current state of affairs with the Dodd-Frank Act — Monday was the fourth anniversary of the law enacted to ensure that the country never suffers through another financial crisis like the one in 2008 — you’d have to say that he has a point.

There are many aspects of the law on which Democrats and Republicans disagree. But there is one area in which the two sides are largely in agreement: “Too Big to Fail” is still with us.

“In no way, shape or form does the Dodd-Frank Act end too big to fail,” said Representative Jeb Hensarling, the Texas Republican who is chairman of the House Financial Services Committee.

“The chances of another financial crisis will remain unacceptably high as long as there are financial institutions that are ‘too big to fail,’ ” wrote Senator Elizabeth Warren, a Massachusetts Democrat, in an opinion article she co-wrote with, among others, Republican Senator John McCain.

(More here.)

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