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Dodd-Frank not going anywhere, regulatory experts say

Barney FrankRegulatory experts are dismissing predictions from the right that Dodd-Frank will not survive without its co-author Rep. Barney Frank (D-Mass.), who is retiring next year.

A Republican takeover in the White House, as well as a majority in the Senate, in addition to maintaining a majority in the House, would be needed in order for Republicans to make any major changes to last year’s financial regulatory law, according to Reuters.com.

Even if the Republicans do manage such victory during the 2012 elections, Jeff Berman, a partner at Clifford Chance in New York, warns that changing the law would not be in the Republicans' best interest.

Berman and other experts agree that banks have already made significant positive changes with only a portion of the new rules having been implemented. Financial firms are coming up with living wills and ending their proprietary trading businesses. They are also preparing for capital raises and working off their bad assets.

Reversing these rules, experts say, could cause chaos in the market.

“The recognition in Dodd-Frank of managing systemic risk as a policy goal of equal importance of the deposit insurance funds and the protection of the investing public is something that is now part of the market expectation and could only be disruptive if it were overturned in a thoughtless and wholesale fashion,” Berman said, according to Reuters.com.

Regulators and lawmakers are less willing to listen to the industry’s Dodd-Frank complaints and are focusing instead on preventing the failure of banks being bailed out with taxpayer money, according to Reuters.com.

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