Lax investment regulations and bad home loans are blamed for sparking the nation’s deepest recession in decades. In response, lawmakers Barney Frank, Chris Dodd and others introduced the Dodd-Frank Wall Street Reform and Consumer Protection Act. The goal was to keep the “average American consumer” safe. But one year later, the act is under legislative attack — and some are questioning whether the legislation has accomplished its goals.

Guests:
Cady North, senior finance policy analyst for Bloomberg Government
Scott Talbott, senior vice president for government affairs at Financial Services Roundtable, a group representing the financial industry
Eric Talley, professor and Gilbert Foundation chair in law, business and the economy at UC Berkeley School of Law

  • Bill, SF

    As we know, derivatives can have positive uses.  But the bottom line is that they performed an insidious and explosive function in the mortgage market:  they allowed a DE-linking of risk and reward.    

    Those selling mortgages got money (the reward) no matter what the quality of the product that they sold.   The risk was spread across many people (although ultimately it was taken on by US taxpayers).    Capitalism works when risk is LINKED to reward.   When risk and reward are not linked, chaos ensues, as we all saw in 2008.

    Without fundamental regulation in the derivatives market, it is only a matter of time before another crisis.

  • Phil from Walnut Creek

    What do you think about just closing down all the biz schools at all American public universities?  They yearly have by far much higher enrollments than all other departments, but teach nothing for the public good, so why subsidize them? 
    Phil from Walnut Creek

  • $7053358

    ThinkProgress has a relevant story this morning:

    Wall Street Donated Heavily To Boehner As The GOP Blocked Funding For Dodd-Frank

    http://thinkprogress.org/economy/2011/07/25/277699/wall-street-donations-boehner/

  • Colin

    If all this regulation has made the banking system “stronger,” than why is lending still so horribly low?

  • Duane

    Regulations might be burdensome to banks?!  My goodness, how DID banks ever survive after 1930?! Oh, that’s right… they were BAILED OUT by taxpayers. Fast-forward 60 years when the banks managed to rid themselves of onerous regulations (bye-bye Glass-Steagall), only to be BAILED OUT again by taxpayers. Yet, they’re still pleading the American public to trust their judgement? How stupid can we Americans be? Banks should be broken up to reduce systemic risk and returned to sound regulation. 

  • Chrisco

    Sounds like quite a conspiracy among bankers. The acrimonious caller who says he does not want to be acrimonious and says there will be unintended consequences BUT also says he is not against the regulations going into effect…

    There is the incoherent industry line: scathing on the new regulations and how horrible they are, but then claiming they are not trying to stop them.

  • shelby

    Why are banks holding on to properties rather than sell them at current market value?

  • Lee

    Where do these self appointed watchdogs come from.  She does not have a clue as to how Dodd Frank is killing the consumer.

    Michael, lets say you just lost your job.  You have perfect credit, a free and clear home and your reemployment prospects are very good.  You need money to see you through… and your son’s tuition installment or medical bills are due.  Tough luck buddy.  No job, no loan.  This is ok for federally insured loans, or where pooled investory (bank depositors) could loose money.
    What business does the federal government have in preventing your next door neighbor from making you a home loan?  Sorry Michal, your only way out is to sell your home.

    Lee

    • shelby

      That’s the ‘game’ to eliminate the middle class, divide America into two classes,dumb down the population with inferior eduction, stack and people into designated spaces, get all public property ready for foreclosure when US defaults.  First Greece, Then Spain, Portugal and other peripheral EU countries…then the US.
      Google:
      -Economist Michael Hudson- There is a war on the people by a newly created class, the financial sector. They produce nothing. They manipulate credit and extract from economies.(see Wikipedia for credentials)
      -You Tube: The Death of the Middle Class-lecture by Elizabeth Warren given before crash at UC Berkeley.
      -You Tube: UN Agenda 21 Sustainable Development, by Shaw, CPA, Att, Santa Cruz.  This is the UN plan (about 42 chapters) already approved and being implemented here in US.
      I’ve been peeling back the layers for the last three years trying to understand: Why do we have this continued poverty and it only increases? Why has education slipped so far? Why did our legislators lay the bank gambling debt on the people when the banks should have been broken up?  Does it matter a sub-set of a single ethnic sub-group was moved into the White House and controls the Fed Reserve and..how many banks?  If it doesn’t matter, why is it so?
      The biggest liability of Americans is they refuse to believe what’s in front of them, even when the facts are clear.

      • BE

        Interesting comments.  Some of us decided to change the game.  whistlewatch.org

  • Gerald Fnord

    We should not be surprised that this is hard to do and meets enormous resistance: it’s always easier to back the strong over the weak.

  • Butler

    They don’t want regulations, and yet they are not libertarians: They are a part of the banking cartel.

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