The Dodd-Frank law made the U.S. financial system much stronger and the president should veto any bills passed by Congress that seek to reverse the sweeping legislation, Treasury Secretary Tim Geithner says.
"By almost any measure, the U.S. financial system is in much stronger shape, not just relative to the depth of the crisis but also relative to conditions that prevailed before it hit," Geithner writes in a Wall Street Journal column.
"Too many Americans are still suffering from the pain of the financial crisis. We owe them a financial system with better protections against abuse and catastrophic risk."
Treasury Chief Tim Geithner
(Getty Images photo)
Many in the financial sector argue Dodd-Frank goes overboard, strangling the sector with too many regulations, with some House Republicans pushing through legislation designed to counter Dodd-Frank measures.
One year after the bill's passage, however, bank profits continue to soar.
"Name me one significant thing that Dodd-Frank has done to alter the behavior of these banks," says Ted Kaufman, a former U.S. senator from Delaware and Democrat who led the push for stronger financial regulations last year, according to the Los Angeles Times.
"There isn't one."
Wells Fargo, the nation's third-largest bank, posted record earnings of $3.9 billion for the second quarter, while JPMorgan Chase & Co. reported that its revenue and profit were higher in the first half of this year than in the first six months last year, before Dodd-Frank was passed.
"I don't hear the banks excessively complaining about the effects of Dodd-Frank," says Erik Oja, a bank analyst at Standard and Poor's.
"It seems like the main thing is the economy, not regulation."
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