Chris Dodd, former chairman of the Senate Banking Committee and co-author of the Dodd-Frank Act, has charged that critics of his legislation were ‘launching false attacks’ in an attempt to undermine its goals of reforming the financial services system.
In an op-ed column published in the Washington Post, Dodd refuted five key arguments against the Dodd-Frank Act: that it exacerbated the financial crisis, that it was ruinous to community banks and small businesses, that it failed to reform Wall Street, that it ignored the problems facing the government-sponsored enterprises, and that economy recovery can be achieved with its repeal.
Dodd also challenged his critics by offering a hypothetical antithesis to the Dodd-Frank Act.
‘Imagine legislation that authorizes regulators to prop up failing institutions; makes consumer protection an afterthought once again and allows predatory lenders and other unscrupulous brokers to take advantage of vulnerable Americans; lets Wall Street banks make risky bets backed by taxpayer money; allows hedge funds to trade derivatives in secret; and prevents regulators from getting the information they need to stop another meltdown before it happens,’ he wrote. ‘Critics who charge that the law is aggravating the recession have forgotten where our economic woes came from in the first place.’