Peter Wallison, the co-director of the American Enterprise Institute’s financial policy studies program, said during a U.S. Chamber of Commerce-sponsored discussion that Dodd-Frank is a “monster,” according to MarketNews International.
“As the Dodd-Frank Act began to look like a likely enactment, the GDP growth began to decline, it’s never recovered to the point where it was in the first quarter of 2010,” Wallison said, according to MarketNews International. “If we look at the housing market, exactly the same thing.”
While the panel economists agreed on the negative impact of Dodd-Frank, supporters of the law maintain that financial reform is necessary following the 2008 financial collapse. Treasury Secretary Timothy F. Geithner has made repeated calls for regulatory reform, noting that previous oversight failures have not yet been addressed.
Jim Angel, an associate professor of finance at Georgetown University, said that government agencies have taken “Dodd-Frankenstein” too far.
“Out of the hundreds of rule-makings that the regulators had been tasked with doing, one thing Congress did not tell the regulators to do was to increase the regulations on money market funds,” Angel said, MarketNews International reports. “Despite the regulatory traffic jam that’s occurring right now with regulatory agencies struggling to meet the deadlines, and in many cases not able to, the regulators are still talking about, ‘We need to do something about money market funds!’”