Market players unconvinced of Dodd-Frank overhaul

Rick Santorum

U.S. financial market players seem to have given up on the idea of an overhauled, face-lifted Dodd-Frank Act.

Industry players, exchange operators and trading institutions have calculated that even if the Republican party stands champion in November, the winner is unlikely to toss out Dodd-Frank reforms.

If the Senate, which is now held by a narrow Democratic majority, were to become a Republican majority, many lawmakers would be fearful to throw out Dodd-Frank for fear of blame if another economic collapse were to befall the nation, according to Reuters.

Republican presidential hopefuls Rick Santorum, Newt Gingrich and Mitt Romney have all vowed to repeal Dodd-Frank, but some industry insiders are doubtful of these promises.

“If the Republicans controlled everything, I think they would be very hesitant to just gut the whole thing,” Donald Wilson Jr., the CEO of Chicago-based DRW Trading Group, said, Reuters reports. “Maybe you’d see some changes in some of the details of things but my sense is that the gist of stuff will go forward as planned.”

Commodity Futures Trading Commission Chairman Gary Gensler suggested that the election will not influence the final outcome of the rulewriting and that the regulator will design rules in “a thoughtful, balanced way to get them right – not against the clock,” Reuters reports.

Despite the consensus that the reforms will not be thrown out, market players do expect to see some changes to Dodd-Frank later on.

One Response to Market players unconvinced of Dodd-Frank overhaul

  1. Pingback: Daily Dodd Frank News | Dodd Frank News and Information