Top financial regulators met with the Senate Banking Committee today on the one year anniversary of the Dodd-Frank financial overhaul law to discuss its impact and need to press forward on new rules.
Republicans used the forum to reiterate their stance that the law is causing more harm than good while Democrats insisted that the recent financial crisis demanded the need to address the lack of regulatory controls in the financial industry, the Wall Street Journal reports.
"The only thing Dodd-Frank has truly accomplished is the creation of a financial regulatory analog to the military-industrial complex," Ranking Republican Member Richard Shelby (Ala.) said, the Wall Street Journal reports.
Rep. Barney Frank (D-Mass.), the co-author of the law, testified before the committee and accused Republicans of starving regulators of the bigger budgets needed for the new rules to be implemented.
Frank’s argument stems from Republican efforts to approve minimal budgets for agencies such as the Consumer Protection Financial Bureau, the Securities and Exchange Commission, and the Commodity Futures Trading Commission.
Federal Reserve Chairman Ben Bernanke said during his testimony that regulators still have a ways to go before Dodd-Frank reforms work, Reuters reports.
Bernanke was accompanied by other financial regulators who said they were working fast enough to give markets certainty but slow enough to get the abundance of new rules right.