Why Dodd-Frank Needs To Be Fixed

16 Mar 2018

This is an in depth article explaining the enormous monstrosity that is Dodd-Frank. Initial compliance costs runs in the hundreds of thousands of dollars ($400M – $600M for Chase). Smaller banks could not keep up with those costs.

Another issue is that much of Dodd-Frank still has a bunch of regulations that need to be determined. It was estimated to be 12-18 months to complete everything. It probably hasn’t been done. But what that does is this… because there is a bunch of legislation that is yet to be determined – it enriches the politicians. Why? Banks will spend money lobbying politicians as the various undetermined rules are determined. That’s in the article below as well.

Too big not to fail – The Economist, 2012/02/18

Over-regulated America – The Economist, 2012/02/18

Advertisements

Senate Approves Dodd-Frank Roll Back

16 Mar 2018

Despite the title of the article, it was a bi-partisan effort to roll back certain measures of the Obama era legislation. 17 Senate Dems approved the roll back. It goes to the House next.

Republicans Took A Hatchet To Obama’s Banking Regulations – Daily Caller, 2018/03/06

Dodd-Frank was originally intended to increase transparency by implementing a consistent set of regulations aimed at closing loopholes and making firms accountable for their own mistakes. The bill attempted to shift the burden of major financial mistakes from taxpayers to market participants, ensuring those who partake in risky investment practices would bear the financial burden of their mistakes. Dodd-Frank promised to “end too big to fail” and “promote financial stability.”

Large banking institutions have grown dramatically since the passage of Dodd-Frank despite the act’s intentions, and small community banks have incurred serious losses as they try to keep up. Crippling regulations saddled smaller banks, forcing American consumers to market with fewer investment vehicles and greater costs.


Trump’s administration applauded the Senate’s move Wednesday, championing it as a win for small and community banks subjected to burdensome regulations for nearly a decade.

“The bill provides much-needed relief from the Dodd-Frank Act for thousands of community banks and credit unions and will spur lending and economic growth without creating risks to the financial system. By tailoring regulation, the bill seeks to prevent excessive regulation from undermining the viability of local and regional banks and their ability to serve their communities,” White House press secretary Sarah Sanders said in a statement.

 

Excessive regulation is the enemy here.  This is not a total repeal, but a removal of parts of the legislation.


Trump Administration Exploring Mental Health Coverage Changes

27 Feb 2018

Trump administration weighs mental health coverage option – ABC News, 2018/02/27

Amid the outcry over the Florida school shootings, the Trump administration says it is “actively exploring” ways to help states expand inpatient mental health treatment using Medicaid funds.


Organizations representing state officials and people with mental illness say no one wants to go back to warehousing patients. But they also say that federal action is needed to reverse a decades-old law known as the “IMD exclusion,” which bars Medicaid from paying for treatment in mental health facilities with more than 16 beds. IMD stands for “institution for mental diseases.”


Last year a government advisory panel recommended repealing Medicaid’s IMD exclusion, and the idea has bipartisan support in both chambers of Congress. But the cost of full repeal has been estimated at $40 billion to $60 billion over 10 years, daunting for lawmakers. State waivers may provide a more manageable path.


Warrantless Wiretap Reform Percolating in Congress

6 Oct 2017

2017/10/04 – Warrantless wiretapping reform legislation circulates on Capitol Hill – The Hill

The House Judiciary Committee on Wednesday is circulating a hotly-anticipated proposal to reform the National Security Agency’s controversial warrantless wiretapping program.

Good to hear. It would be even better to investigate possible wiretapping violations that may have occurred. A copy of the legislation is at the link.