Peter J. Wallison, the former general counsel of the U.S. Treasury and White House, recently criticized the Dodd-Frank Act and called on Treasury secretary nominee Jack Lew to push for reform of the legislation.
“To be operational, [Dodd-Frank] requires almost 400 new regulations,” Wallison said, according to The New York Times. “Of these, fewer than half have been finalized in the two years since the law’s enactment. The most important regulations, like the Volcker rule and the regulations that will govern the mortgage market, have generated so much conflict among the regulatory agencies that these rules have not been promulgated in final form. When they are finalized, the legal and constitutional challenges already threatened or filed will extend the uncertainties about the rules for many more years.”
Wallison appealed to Jack Lew, who was recently appointed as the U.S. Treasury Secretary and is awaiting confirmation by the Senate, to advocate for reforms to the controversial law.
“The long-term unemployment this nation has endured since the end of the recession in June 2009 has not only contributed to our deficit and debt, but now threatens to make large numbers of Americans unemployable because they have lost the work skills that our innovative economy requires,” Wallison said, The New York Times reports. “This is a serious crisis, and seems to have its source in the Dodd-Frank Act. It’s time to consider whether Congress went too far. Clearly, making significant reforms to Dodd-Frank, so that financial institutions will have some confidence about their future obligations, will be difficult. The president sees this as a major success of his first term. But in light of its adverse effects on the economy, shouldn’t you be prepared to tell the president that a serious review of Dodd-Frank is necessary?”