Here are some of the worst aspects:
Too Big to Fail: – Title I of the bill created a new permanent bailout regime, the Financial Stability Oversight Council. This institution would vitiate the bankruptcy process and allow the government to take over any entity that it deems vital to the rest of the economy. In other words, it consummates “too big to fail” as a permanent policy, the very policy this bill was supposed to fix.
Volcker Rule – The Volcker rule ostensibly prohibits regular banks from investing their own money by engaging in bond trading. It also prohibits banks from holding more than a 3% stake in private equity funds. Just this part of the bill is 300 pages long! It will take hundreds of new Keynesian jobs just to enforce, interpret, and comply with the rule.
CFPB – The bill created the Consumer Financial Protection Bureau (CFBP), which will limit the choices of consumers in financial markets, making it harder and more expensive to obtain credit. This unaccountable agency will operate autonomously within the Federal Reserve and will not be subjected to congressional appropriations or oversight. It is essentially the “death panel” of the financial sector, with control over bank accounts, mortgages, and student loans.
Derivatives Trades – Some key restrictions on derivatives trades only apply to banks with assets above $10 billion. This has created a perverse incentive for banks to limit their expansion, and by extension, creation of jobs, for the purpose of staying below the limit.
Debit Card Fees – The new limitations on bank charges for processing debit card submissions from retailers has caused an increase in user fees for customers, most notably, for opening checking accounts. It has also prompted banks to eliminate debit card rewards programs.
Freddie/Fannie – Dodd-Frank did nothing to privatize or even reform these two behemoths that are responsible for the housing crisis and the recession.
It’s no wonder such an odious law was conceived by two of the most corrupt members of Congress – Barney Frank and Chris Dodd – who were largely responsible for the housing crisis and ensuing freezing of the credit market. Sadly, three Republicans joined with Democrats to give opponents of free enterprise 60 votes in the Senate to pass the bill.
And while Brown was the 41st vote in trying to stop Obamacare, he WAS the 60th vote that saddled us with this citizen crushing law. In fact, D-F gave us the CFPB – unelected and unaccountable appointed folks that can kill any business they want on a whim and can monitor EVERY financial transaction you ever make – go ahead, ask Scott Brown how this is congruent with the Land of the Free without interference or intrusion from Government? The Bigger the Government, the smaller the citizen Can we trust Scott Brown NOT to make it even Bigger?
ORIGINALLY POSTED BY SKIP ON GRANITEGROK!