Legislators’ efforts to reform Wall Street with the Dodd-Frank Act may have already failed, a writer at The Motley Fool suggests, pointing to three key challenges facing the nearly new addition to U.S. regulatory policy.
Enforcement. The article points to a history of enforcement issues at the Securities & Exchange Commission, citing a figure from the New York Times that says banks have been granted 350 procedural waivers over the past decade.
Funding. The SEC’s $1.32 billion budget figure, along with its 1,300 full-time employees, are dwarfed by the New York Police Department’s staff of 36,000 and funding of $3.9 billion.
Complexity. The author calls the Dodd-Frank Act “prone to loopholes,” citing a semantics issue at trading desks over the use of the word “proprietary.”
The Dodd-Frank Wall Street Reform and Consumer Protection Act was one of seven laws featured in a PYMNTS.com feature item analyzing which U.S. presidents had the largest impact on today’s commerce system.
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