Tags: Dodd-Frank | financial reform | Richard Cordray | Consumer Financial Protection Bureau

Republicans Still Have Chance To Weaken Dodd-Frank

By Dan Weil   |   Wednesday, 20 Jul 2011 04:41 PM

Democrats felt very good a year ago when they passed the Dodd-Frank Act to restructure the nation’s financial regulatory system.

 

But Republicans are eager to undo what they see as excessive government intrusion created by the new law, The New York Times reports. And there is a good chance they could succeed. More than 20 bills have been introduced in Congress to get rid of various elements of the law.

 

Even President Barack Obama realizes Dodd-Frank is skating on thin ice as he steps up to defend it. “The financial crisis and the recession were not the result of normal economic cycles or just a run of bad luck,” he said Monday. “There were abuses and there was a lack of smart regulations. So we’re not just going to shrug our shoulders and hope it doesn’t happen again.”

 

Obama offered those comments while nominating a director for the new Consumer Financial Protection Bureau, a lynchpin of the reform law.

 

But Obama may not even be able to push his choice for the position, Richard Cordray, a former Ohio attorney general, through the Senate’s confirmation process. And the GOP may succeed in making the bureau a lot more toothless than envisioned by the White House.

 

Whatever the regulatory environment, big U.S. banks are still having trouble recovering from the 2008-09 financial crisis.

 

Goldman Sachs, for example, announced job cuts of 1,000 Tuesday after poor results in its bond trading activity in the second quarter.

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Democrats felt very good a year ago when they passed the Dodd-Frank Act to restructure the nation s financial regulatory system. But Republicans are eager to undo what they see as excessive government intrusion created by the new law, The New York Times reports. And there...
Dodd-Frank,financial reform,Richard Cordray,Consumer Financial Protection Bureau
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