Republican presidential candidate Mitt Romney reiterated his pledge to repeal the Dodd-Frank Act while expanding his criticism of the legislation to include a slam at the qualified mortgage provision.
During the Oct. 3 presidential debate, the former Massachusetts governor stressed that regulation was ‘essential’ to maintaining economic order.
‘You couldn't have people opening up banks in their garage and making loans,’ he said.
However, Romney referred to the Dodd-Frank Act as ‘excessive’ regulation, adding that it created more problems than solutions.
‘It's been two years,’ said Romney, referring to period since the 2010 passage of the legislation. ‘We don't know what a qualified mortgage is yet. So banks are reluctant to make loans, mortgages. Try and get a mortgage these days. It's hurt the housing market because Dodd-Frank didn't anticipate putting in place the kinds of regulations you have to have. It's not that Dodd-Frank always was wrong with too much regulation. Sometimes they didn't come out with a clear regulation.’
Romney also noted that 122 community banks have closed since the Dodd-Frank Act was passed, and compared that to federal policy guaranteeing the survival of the financial institutions that are designated as being too-big-to-fail.
‘This is the biggest kiss that's been given to New York banks I've ever seen,’ he said. ‘This is an enormous boon for them.’
President Obama answered Romney's charges by saying his response to the financial crisis resulted in ‘the toughest reforms on Wall Street since the 1930s.’ He also derided Romney's call to repeal the Dodd-Frank Act.
‘And so the question is: Does anybody out there think that the big problem we had is that there was too much oversight and regulation of Wall Street?’ Obama said. ‘Because if you do, then Gov. Romney is your candidate. But that's not what I believe.’