“The answer to excess on Wall Street is not excess in Washington,” Long said, according to The Wall Street Journal. “Dodd-Frank micromanages and second-guesses businesses, while impairing the availability of credit that is vital to economic expansion. It is a full-employment act for bureaucrats, lawyers and consultants.”
Long said that the Volcker Rule, a provision designed to restrict proprietary trading, is “unworkable,” adding that the rule should be repealed because “there is no evidence that proprietary trading had anything to do with the financial crisis,” The Wall Street Journal reports.
Long called for the repeal of the Lincoln Amendment, which requires banks to outsource derivatives transactions to affiliates, saying that the rule “will divert capital from well-capitalized banks to new, unnecessary entities, and may drive business offshore.”
In addition, Long called for the elimination of the CFPB, arguing that the agency takes up a large chunk of the Federal Reserve’s budget and that it is “structured so neither Congress nor senior executive branch officials exercise any real control over its activities, making it constitutionally suspect,” The Wall Street Journal reports.
Long said that the ultimate answer to reforming the financial system is really reforming regulators.
“Dodd-Frank shows the morass that is created when multiple agencies are tasked with implementing complex legislation,” Long said, The Wall Street Journal reports. “We need one business-conduct regulator…that can focus on catching the next Bernie Madoff and MF Global, instead of engaging in turf battles and penny-ante enforcement.”