Treasury Official: Curtailing Dodd-Frank Leaves Economy Open To 'Collapses And Crises'

WASHINGTON (Margaret Chadbourn) - The law overhauling the financial system should continue to protect the economy in the future despite any challenges it's faced in its first year of existence, a top Treasury official said on Wednesday.

"Scaling back or repealing major parts of the Dodd-Frank Act or not providing regulators with the funds they need to implement the Act will leave our economy exposed to a cycle of collapses and crises," Treasury Assistant Secretary for Financial Markets Mary Miller said in prepared remarks for delivery to a securities trade organization.

Miller is speaking to mark the one-year anniversary of the passage of the Wall Street reform bill, known as the Dodd-Frank Act.

"We are committed to implementing effective reform that encourages stability, which is necessary to restore investor confidence in our markets," according to remarks Miller is due to make to the Securities Industry and Financial Markets Association's Regulatory Reform Summit.

Debate continues on Capitol Hill over the final shape of Dodd-Frank as regulators continue to implement hundreds of new rules required by the law that oversee the financial system.

The law, signed by President Barack Obama on July 21, 2010, has been sharply criticized by Republicans who have pushed for repeal provisions in the U.S. House of Representatives.

(Editing by James Dalgleish)

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[pooka47401]

12:56 PM on 07/14/2011

Congress is owned by the very Corporations that this Act tries to Regulate. When you are paid "Donations", otherwise known as Bribes, then you do as you are told. Congress is a revolving door of Lobbyist that were previously Politicians, and vice versa. Now that the Supreme Court has allowed massive amounts of money to be given to Congress, anonymously, the door has been opened for unlimited Bribes. When they are elected and enter this corrupt universe, called Congress, it is a very rare individual who can withstand the temptation of money and the pressure of acceptance by his peers, no matter what was promised during campaigning.

The only thing different, currently, is that those who do the bribing are becoming more overt in their actions. They don't feel that they have to hide their intentions in the background anymore. They believe that they have won the battle for control of America. As Actions, by Congress, Speak Louder Than Words, they appear to be right.

[zmanusmc]

12:38 PM on 07/14/2011

The U.S. economy is crumbling. Businesses are collapsing in record numbers. Jobs have disappeared. Tax revenues are down dramatically. Coincidence? A country dominated by socialists, Marxists and statists, where looters, free loaders and poverty promoters living off the productive class cannot survive. Never has. To rationalize the fleecing of innovative business owners and job creators, the looter class has demonized the wealthy. The business owner is demonized, over-taxed, over-regulated, and punished for success, America’s business owners are disappearing — dropping off the grid, and refusing to work 16-hour days to support those unwilling to put in the same blood, sweat and tears.

[oilfield]

11:48 AM on 07/14/2011

capitalism has cycles of recessions...the problem is that the government wants to "fix" them instantly for political reasons.

[jtabs]

10:02 AM on 07/14/2011

Sadly the country has already collapsed.

[greyhound2]

09:59 AM on 07/14/2011

Of course another, even bigger, collapse is coming. As long as the Wall Street fraudsters are winning at the crap table and pocketing their gains, everything will be fine. But as soon as the dice crap, the run will be on for taxpayers to pick up the bill on the losses. Next time, however, the piggy bank will be empty, as the fraudsters already sole all the money and skipped town.

[Dan Lavry]

02:03 AM on 07/14/2011

The one stop-gap that could have prevented the collapse is the Glass Steagall act. That act was removed, allowing investment banks to grab money that does not belong to them and speculate with it, paying themselves fortunes while building paper empires based on lies.

The trick was to pass the bad paper while charging a lot for the transaction. This was a planned scam. The first thing the needed was to repeal the Glass Steagall act. They lobbied congress and paid off the politicians, and they got it done, the act was repealed.

The real question is: Instead of thousands of pages that even an army of lawyers can't follow, why not reinstate the Glass Steagall act? Not doing it means extending the license of the crooks to steal!
This act is the FOUNDATION to protect the world against those gangsters.

The republicans will not do it. Obama will not do it. They work for the billionaires.

[teachone]

01:38 AM on 07/14/2011

Mary is 100% correct! The law was written for a very good reason and it can only do the job it is meant to do , if it is enforced as originally written!!

[mooncop1]

06:52 PM on 07/13/2011

Politicians caused the crisis. The american prople need to regulate them.

[carleronn]

02:56 PM on 07/13/2011

So the entities that caused the crisis, Fannie and Freddie, are left untouched but the private sector is to be burdened by reulations written by the two biggest protectors of Fannie and Freddie, Barney Frank and Chris Dodd. Doesn't anybody see the absurdiity of it all?

[GetRealSoon]

05:11 PM on 07/13/2011

Interesting you should say that after the article "Blaming Fannie Gives Banks Free Pass" came out today.

[jimme]

05:37 PM on 07/13/2011

What's absurd is that you still think F&F are to blame.

[Quitcherbichin]

11:43 PM on 07/13/2011

If you know anything about the root cause of the housing bubble bursting, you know that lending practices of Fannie and Freddie were directly responsible for the crisis. If you don't know that, then you don't know what you are talking about.