Dodd-Frank; financial regulation is a political success...otherwise (read on)

By
Mortgage and Lending with Christensen Financial Mortgage 385907

Two-thirds of Dodd-Frank still not in place

so says Jennifer Liberto of CNNMoney. That would also mean

only one third of the new rules have actually been implemented

Why are we not surprised. The legislators are obviously much better at writing and politicizing legislation than they are at implementing, and enforcing the regulations.

You're just going to love the next part, I mean really really love it.

With so much on their shoulders, regulators have been meeting regularly with bank lobbyists, many who are experts, but also have an agenda to ease or roll back parts of Dodd-Frank.

I'm almost speechless (almost I said)

they are sooooo busy, they can't do their jobs

they turn to the lobbyists, who are the experts (of course they are)

the lobbyists have their own agenda...surprise, surprise, surprise

"all the lobbyists come in and they want this exception or that exception, and the [regulators] are accommodating that and they shouldn't." 

That statement comes from former FDIC chief Sheila Blair, who captained the ship, during the crisis and its aftermath.

They come in and they want exceptions.

By definition (Webster's);

lobbyist; one who tries to influence legislators

that's their job, to promote their own interests (and many are paid quite well for it).

apparantly they do it better than the regulators do their job, which may be constued, at least partially, to hold these very same lobbyists at bay. 

On another front you may find parts of the legislation faulty, or maybe ludicrous. Try this.

"many rules have been delayed. New regulations requiring larger capital cushions at the big banks, which had been overleveraged going into the financial crisis, don't start to kick in till January. The safest, thickest capital cushions won't be in place until 2019.

that's not a misprint, that's 2019.

I feel better already.

So, for those who favor Dodd-Frank and regulation in general, politically, you're good. The bill passed. Look at the good we have done.

But if you're waving a Dodd-Frank flag saying we fixed it. Well

No you didn't, "two thirds of Dodd-Frank not in place."

So, otherwise

Well, draw your own conclusion  

 

Comments (2)

Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

The sooner that Dodd-Frank is repealed the better. Between Obamacare and Dood-Frank, these two pieces of legislation have done so much harm in this country.

Jul 23, 2012 10:07 PM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Joe,

I just watched a video interview with Sheila Blair. She said that even the one third which has been implemented is ineffective and burdensome. The regulators are not quite sure what the law means. you'd think that would make enforcement difficult.

I also just saw an Obama TV add touting how we have gained control of the financial institutions. He can actually say this with a straight face.

practice, practice, practice.

thanks

Jay

Jul 23, 2012 10:25 PM