Why Not Replace Dodd-Frank With Glass-Steagall?

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Why Not Replace Dodd-Frank With Glass-Steagall?

Last week President Trump started moving forward with his campaign promise to repeal the disastrous Dodd-Frank Act, taking steps to walk back some of the rules and regulations the bill spawned. While these are promising first steps, the larger provisions of the bill will have to be met with legislative action.

For those not familiar with the Dodd-Frank Act, it was the Obama Administration’s response to the financial crisis that increased costs on consumers while further undermining the stability of the banking sector by making the “Too Big to Fail” banks bigger. America faces dangerous Bank consolidation due to the mountains of red tape Dodd-Frank has created for lenders, forcing many small and community banks to merge with larger financial institutions. Since Dodd-Frank has passed, only three banks have been chartered in the US.

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Screenshot 2022 08 10 18.57.51 1Since its founding by Will Thomson and Chip Russell in June 2016, the Massif Capital Real Asset Strategy has outperformed all of its real asset benchmarks. Since its inception, the long/short equity fund has returned 9% per annum net, compared to 6% for the Bloomberg Commodity Index, 3% for the 3 MSCI USA Infrastructure index Read More

Dodd-Frank

Another issue with the Dodd-Frank Act is the Volcker Rule. The goal of the Volcker Rule was to prevent banks from making risky speculative trading. The policy tried to replicate the separation between investment and commercial banking that was esta