Financial Regulation Lags After Dodd-Frank Fox Business August 9, 2011.

Dodd-Frank One Year Anniversary of Dodd-Frank: “It's been a year since Congress passed and President Barack Obama signed into law the most sweeping financial reform since the Great Depression.” Rules, Rules and More Rules “But as of the Dodd-Frank Act's July 21 anniversary, regulators had completed only 49 of the hundreds of rules mandated by the 2,000-plus page law.” “The law sets more than 240 deadlines for 22 different regulators to write rules…”

Dodd-Frank What Does the Law Do? 1. Consumer watchdog (Consumer Financial Protection Bureau) 2. Financial Stability Oversight Council

Dodd-Frank What Does the Law Do? A New Consumer Watchdog “The Dodd-Frank Act created a new federal agency to protect consumers who use a range of financial products.” The Politics of a Agency Budget “The agency is financed out of the federal budget. Fin-Reg advocates hail that as an important development because the regulator won't be as beholden to the private sector as other agencies that rely on institutions they regulate for their budget.”

Dodd-Frank What Does the Law Do? A New Consumer Watchdog: Responsibilities Fair credit: “Governs consumers' rights to their credit information and how the data are used or disseminated.” Truth in lending: “It requires lenders to clearly disclose costs and fees associated with credit, and it provides a method for resolving disputes.” Mortgage Origination Rules: (need to be able to repay) Consolidation Regulatory Oversight “Previously, seven different agencies -- sometimes seen as too cozy with industry -- oversaw the three dozen laws that Dodd-Frank replaces.”

Dodd-Frank What Does the Law Do? Consolidation Regulatory Oversight “Previously, seven different agencies -- sometimes seen as too cozy with industry -- oversaw the three dozen laws that Dodd-Frank replaces.” “Elizabeth Warren…the White House adviser who as an academic championed the creation of a consumer bureau -- has led the agency in simplifying mortgage disclosures, creating a database of consumer complaints and offering financial education to consumers.”

Dodd-Frank Obstacles and Opposition: “Obama has nominated former Ohio Attorney General Richard Cordray as director of the bureau, setting up a fierce battle with Republicans in Congress who have vowed to block any nominee unless the agency's power is curbed. Obama has the power to appoint Cordray as interim director during a congressional recess, but lawmakers have avoided going into recess.”

Dodd-Frank Financial Stability Oversight Council Oversees new rules: - Higher capital requirements (for "systemically important" financial companies). - Authority to liquidate…failing bank within 24 hours - A ban on proprietary trading by U.S. banks (or investing on their own behalf rather than that of customer) - Crackdown on mortgage market - Whistleblower Program - Limits on card credit fees, known as swipe fees. - Better investor protections (“prevent…the repackaging of securities for investors who relied on the sound credit rating of the company that sliced and diced the loans”).