Public Citizen on Dodd-Frank’s fifth anniversary

Public Citizen is also speaking today about the fifth anniversary of the Dodd-Frank Act:

On the fifth anniversary of the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act, key provisions of the law still have not been implemented or are inadequately enforced, a new Public Citizen report (PDF) shows. The report, “Dodd Frank Is Five: And Still Not Allowed Outside the House,” documents the poor implementation of the law.

“Five years after President Barack Obama signed this legislation, Dodd-Frank remains largely incomplete,” said Bartlett Naylor, Public Citizen’s financial policy advocate and author of the report. “Major portions of the law have yet to be codified into specific rules. Many enforcement dates are set well into the future, and certain rules are not yet being implemented and enforced to the fullest extent of the law.” Of the 390 rules required by the law, fewer than two-thirds have been completed; 60 rules have yet to be finalized, while another 83 have not even been proposed, according to a tally by law firm Davis Polk. …

The report reviews the Volcker Rule ban on short-term speculation, the now-repealed provision that required swaps speculation to take place outside of taxpayer-backed banks, the rule barring pay schemes that reward excessive risk-taking, and the “living will” powers that allow regulators to break up major financial institutions.

In many cases, regulators have either failed to finalize rules, granted exemptions and lenient compliance phase-ins, or ignored powers granted by Congress.

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