Attention on the 4th anniversary of the landmark Wall Street Reform and Consumer Protection Act (Dodd-Frank) resumes: Better Markets’ new poll on voters’ unhappiness with the pace and extent of financial reform continues to get broad coverage: Check out this terrific editorial by Bloomberg News on the status of federal financial reform regulation since the passage of Dodd-Frank. And in this column in Forbes by former U.S. Senator Ted Kaufman, who played a central role in Congress to address the 2008 and 2009 financial crash. Then watch President and CEO Dennis Kelleher talk financial reform and Better Markets’ recent poll on voters’ concerns over Wall Street and big banks on Real Money with Ali Velshi.
The revolving door for senior government officials taking top jobs in the very industries they were in charge of “regulating” spins again: The Commissioner of the Commodity Futures Trading Commission, Scott O’Malia, announced he was retiring and then just two days later announced he was going to become CEO of the big industry trade group International Swaps and Derivatives Association (ISDA), which has battled the CFTC and financial reform relentlessly. It has also sued the CFTC twice over key rules necessary to protect US taxpayers from paying for more bailouts of Wall Street’s derivatives dealers, as just happened in 2008. Better Markets President and CEO Dennis Kelleher didn’t mince words over this latest example of influence peddling:
“Killing public trust and reeking of conflicts of interest, senior government officials cashing in and influence peddling are out of control and must be limited by law.”
Several press reports included comments from Kelleher, too, including Bloomberg News and Reuters.
The Securities and Exchange Commission finalized a rule governing the systemically risky money market funds, but didn’t do a very good job: Unfortunately, the commission adopted a woefully weak rule that will continue to leave these markets vulnerable to a future financial crisis. Better Markets provided commentary in the form of a blog on the inadequacies of the SEC proposal, and recommendations on how to improve it.
The much-anticipated report from the Government Accountability Office (GAO) on “too-big-to-fail” banks is expected to be released next week. Better Markets will have more to say once the report is actually released and we have the opportunity to review the GAO report. Stay tuned!
Better Markets in the News:
Al Jazeera America: The debate over Dodd-Frank four years later – July 21, 2014
Forbes.com (opinion): After four years of Dodd-Frank, we are still waiting for Wall Street reform – July 22, 2014
The Hill: Dodd-Frank poll finds Wall Street’s bad practices have not changed – July 21, 2014
Bloomberg News editorial: Dodd-Frank’s Four Years of Doing Nothing – July 20, 2014
Reuters: U.S. swaps regulator O’Malia to head bank lobby group – July 23, 2014
Bloomberg News: CFTC’s O’Malia resigns to head derivatives industry lobby – July 23,
Articles of Interest:
Wall Street Journal: Republicans Target Dodd-Frank – July 20, 2014
Wall Street Journal: Four years of Dodd-Frank damage (opinion) – July 20, 1014
Financial Times: AIG claws back $2B from banks on crisis loan bonds – July 20, 2014
Time.com: The lions of Wall Street are finally obeying ordinary investors – July 20, 2014
Center for Public Integrity: Four years after passage, House keeps trying to kill Dodd-Frank – July 21, 2014
Financial Times: Wall Street money backs Senate Republicans – July 23, 2014
New York Times: Credit Suisse Posts Largest Loss Since 2008 After U.S. Settlement – July 23, 2014
Wall Street Journal: JPMorgan Starts Homeowner Loan Relief Under $13B Pact -July 23, 2014