Now that the government has begun implementing Dodd-Frank Act regulations, the American Bankers Association is focusing on reforming the law instead of repealing it.
The ABA, the nation’s largest banking lobby, said that a repeal would cause a major disruption because the operation has already begun, according to WashingtonPost.com.
There are many provisions in Dodd-Frank, however, that the ABA would like to see amended. It has developed a strategy that examines elements where reforming and replacing them would be a better option for banks.
“In practical terms, rather than do a straight repeal and undo things already in effect, it’s easier to look at some things that haven’t gone into effect yet,” Wayne Abernathy, the ABA’s executive vice-president for financial institutions policy and regulatory affairs, said, WashingtonPost.com reports.
Hundreds of rules that came out of Dodd-Frank have yet to be written, including the Volcker Rule, which prohibits financial firms from investing more than three percent of their Tier 1 capital in private equity or hedge funds.
Agencies are overwhelmed by the number of rules that they are required to write that are causing implementation delays for many Dodd-Frank regulations. The ABA has taken advantage of that extra time and has spent $4.6 million on lobbying to ease the regulations since August, according to WashingtonPost.com.