This is a quick read about the various parts of the Dodd-Frank Act. The Blinder book has a chapter or so about the act and I think this short article is helpful in reading that chapter.
When reading section 4 it made me a bit nervous to see how this act was written. This may be politically incorrect, but I do not think Congress is the best body to be voting on a bill that will reshape the financial industry. Rather I would of like to see the bill debated on by a group of PhD. Economists/Financiers and Congress left out of the process. For example, on page 313 Blinder highlights that Blanche Lincoln “persuaded the committee to force banks to spin off all their derivatives trading, proprietary or not” (313). WHAT!? If it wasn't for the White House, FED, and Treasury shutting this idea down this woman could of ruined the finance industry. Though being a Congressmen/Congresswomen is a very high respected profession, in some states (less populated states) it might not be that hard to get voted into Congress. This scares me!
In regards to the article, CNBC gives a quick overview whereas Blinder explains more of how Dodd Frank came to be. In terms of the FSOC watching over banks that are too big too fail, what entitles too big to fail? A major critique I have seen of Dodd Frank it that some of the language is too subjective.
When reading section 4 it made me a bit nervous to see how this act was written. This may be politically incorrect, but I do not think Congress is the best body to be voting on a bill that will reshape the financial industry. Rather I would of like to see the bill debated on by a group of PhD. Economists/Financiers and Congress left out of the process. For example, on page 313 Blinder highlights that Blanche Lincoln “persuaded the committee to force banks to spin off all their derivatives trading, proprietary or not” (313). WHAT!? If it wasn't for the White House, FED, and Treasury shutting this idea down this woman could of ruined the finance industry. Though being a Congressmen/Congresswomen is a very high respected profession, in some states (less populated states) it might not be that hard to get voted into Congress. This scares me!
ReplyDeleteIn regards to the article, CNBC gives a quick overview whereas Blinder explains more of how Dodd Frank came to be. In terms of the FSOC watching over banks that are too big too fail, what entitles too big to fail? A major critique I have seen of Dodd Frank it that some of the language is too subjective.