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Dodd-Frank Rules Get A ‘C’ From BankRate

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Dodd-Frank is a dud. At least according to Bankrate, who gives the implementation of the controversial Wall Street reform law passed back in 2010 a grade of “C”. Politicians, banks and other financial institutions have fought tooth and nail from the day the law was passed to repeal, water down or prevent the implementation of various parts of the Dodd-Frank rules, and unfortunately the ‘Big Bank cabal’ been quite successful in their efforts to prevent much of the desperately needed regulation of the “loose cannon” financial industry

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The Dodd-Frank Wall Street Reform and Consumer Protection Act is a federal law passed in 2010 designed to protect consumers and the U.S. economy by implementing new rules and regulations for U.S. banks and other financial institutions.

Dodd-Frank was a key part of the U.S. government’s response to the 2008 financial crisis, and designed to prevent a repeat of the Great Recession. More than four years later, dogged by opposition from bank lobbyists and their bought-and-paid-for political friends, the law has been significantly watered down and is still only partially implemented.

The law required 398 new federal rules. To date, 231 of the Dodd-Frank rules have been finalized, 83 have been proposed and 94 have not yet been proposed, based on information from law firm Davis Polk & Wardwell.

Dodd-Frank rules get a “C” overall

The Consumer Financial Protection Bureau is one of the few success stories of the Dodd-Frank law, and the federal agency charged with protecting consumers from financial predation like unfair mortgages, payday loans or credit cards has been established and is generally getting good reviews. The CFPB became operational in July 2011, and its jurisdiction includes banks, credit unions, securities firms, payday lenders, mortgage-servicing operations, foreclosure relief services, debt collectors, other financial companies and virtual currencies. Bankrate gave the CFPB a grade of “A-”

Bankrate says that the Durbin Amendment, which caps wipe fees that banks can charge retailers, only gets a grade of “C-” because it hasn’t really helped consumers.

The Financial Stability Oversight Council, a body created to identify risks to the financial stability of the United States, promote market discipline and respond to emerging risks to the stability of the U.S. financial system, receives a “B” from Bankrate for making progress in setting up the framework for an “early warning” system.

The Volcker Rule receives a barely passing grade of “C-” from Bankrate, as the rule designed to limit banks involvement in hedge fund and stock trading for their own profit has been notably watered down with several major exemptions for megabanks.

Dodd-Frank Rules

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