By: Heather Slavkin Corzo
Six years ago this week, hundreds of people gathered in Washington, D.C., to watch President Barack Obama sign into law the Dodd–Frank Wall Street Reform and Consumer Protection Act. On that day there was a hope that its passage marked the beginning of a new phase in Washington’s approach to Wall Street regulation.
Dodd–Frank was passed in the aftermath of the “Great Recession” to deal with the urgent problems in the financial system that became apparent during the crisis. It marked a shift away from the “light-touch” approach to Wall Street regulation that had characterized the 30-year period that led to the crisis. A lot has hinged, however, on decisions by regulators about how to implement the law and whether Congress would finish the job of re-writing the rules that govern Wall Street that started with Dodd–Frank.
It’s worthwhile to look back and appreciate the great things that Dodd–Frank accomplished.