- Legal Industry
- No comments
The Dodd-Frank financial oversight law, on the surface, appears to be in a lot of trouble. Regulators are several months behind in rulemaking, Republicans were able to hold hostage the agency funding for the law, and it looks like the business community is poised to win its first court challenge to a vital provision.
In addition to these, Republicans along with Wall Street giants are advertising a doomsday scenario of Dodd-Frank Act killing the strained economic recovery. However, behind all these challenges, a kind of acceptance is gradually setting in.
According to Todd Groome, the chairman of a global hedge fund industry group, the Alternative Investment Management Association, “There are people who are… using budget conversations and other delay-type of activities to water down or substantively change Dodd-Frank. But I’d say the majority of people are saying, ‘It is what it is.”
He further added, “Let’s try to make it work.”
Democrats, led by Sen. Christopher Dodd and Rep. Barney Frank, declared victory a year ago in pushing through far-reaching market reforms in response to the most terrible financial crisis in several generations and a ruthless recession.
The law limits the ability of banks to engage in risky trading. It also cuts into bonuses at Wall Street, calls for a more stringent hedge fund oversight, and attempts to shed light on the approximately $600 trillion global derivatives market that played a big role in bringing to its knees the global financial system.