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BPC initiative could reveal impact of Dodd-Frank on American businesses, consumers

Martin Baily

The Bipartisan Policy Center launched its Financial Regulatory Reform Initiative earlier this month, a move that may provide a better analysis of the 2010 Dodd-Frank Act’s impact on American businesses and consumers.

The initiative is intended to help legislators and regulators collaborate and coordinate reforms “that will improve financial regulation and supervision while still preserving the intent of Dodd-Frank to prevent systemic risks and to help customers.”

“Through this new effort we will assess what aspects of Dodd-Frank are working well and what aspects need improvement, while preserving the intent of the law,” Dr. Martin Baily, an initiative co-chair and former chairman to the Council of Economic Advisers under president Bill Clinton, said. “We will propose concrete and actionable recommendations for incremental changes to the legislation, as well as more substantive reforms to fill in the gaps left from Dodd-Frank.”

The initiative will consider several aspects of financial reform, including failure resolution, systemic risk, regulatory structure, capital markets, the Volcker Rule and consumer financial protection.

Dodd-Frank was enacted in 2010 following the financial collapse. The hotly debated legislation was designed to limit risk to the U.S. financial system and end “too big to fail.” Some provisions of the law, however, have been the object of controversy.

“We understand that it is not possible to eliminate all future financial crises through rules and regulations,” Dr. Phillip Swagel, the initiative’s other co-chair and former assistant secretary for economic policy at the U.S. Treasury, said. “Still, we believe now, two years since the enactment of Dodd-Frank, is a key time to gauge the aspects of the legislation that have helped stabilize the financial system and to consider possible changes to improve the regulatory system.”

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