The Republican-controlled House of Representatives recently passed a bill meant to repeal a landmark law enacted under President Barack Obama.
The Dodd-Frank Act, passed in 2010, was designed to prevent another banking meltdown like the one that precipitated the Great Recession, the worst economic crisis in the United States since the 1930s.
But no matter how much President Trump wants to unravel his predecessor’s legacy, he and his allies must know that even outright repeals cannot negate the new realities unleashed by the laws. Because of the Affordable Care Act, health care has morphed from just another cog in the U.S. economy to a fundamental expectation that all citizens, regardless of age, income or geography, should receive some level of care.
Similarly, Dodd-Frank has created new facts: mainly, the belief that banks must not again become too big to fail and that taxpayers must not bail them out if they do. That mind-set will remain no matter what happens to the law.
“Dodd-Frank is not going away,” said Jackie Prester, a former federal bank examiner who now chairs the financial services transactions group at Baker Donelson law firm in Memphis. And while Congress will probably wind up just tweaking Dodd-Frank, the real issue is not the law itself but rather how the regulatory agencies implement it, she said.
So it’s just more trash talk from the GOP…nothing more.
Source: San Francisco Chronicle