Now Americans are learning that the Dodd-Frank Act did one other very dangerous thing: it legally authorized the U.S. Treasury Secretary to take the Federal Reserve hostage during a financial crisis. Section 1101 of the Act provides that the Federal Reserve Board, “may not establish any program or facility under this paragraph without the prior approval of the Secretary of the Treasury.”…
Dodd-Frank Is 10 Years Old Today and the Fed Is Back to Bailing Out Wall Street…
Today marks the 10th Anniversary of the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act, named after its two sponsors, former Senator Christopher Dodd (D-CT) and former Congressman Barney Frank (D-MA). The massive piece of legislation was signed into law on July 21, 2010 by President Barack Obama at a time when […]
Goldman Sachs and JPMorgan Have Flagrantly Flaunted the Volcker Rule for Nine Years: Now It’s to Be Gutted by Federal Regulators…
Two of Wall Street’s crony regulators announced today that they are going to “simplify” the Volcker Rule’s ban on proprietary trading at Wall Street banks, providing another big win for Wall Street and another big nightmare for Main Street. The financial crash on Wall Street in 2008 was the deepest economic upheaval in the U.S. […]
A Decade After the Financial Meltdown, the SEC Still Hasn’t Passed Executive Compensation Rules…
Almost everyone got on board the reform train after the 2008 financial crisis. However, big business, and in particular the biggest banks, slammed the brakes on reforms that threatened to separate senior executives from their money that critics said incentivized excessive risk taking before the crisis. Almost all of the mandatory provisions of the law […]
Gorsuch Comes Out Swinging in Dodd-Frank Whistleblower Case…
Justice Neil Gorsuch used a challenge to federal whistleblower protections before the Supreme Court on Tuesday to take aim at a core legal tenet of which he has long been critical. The case at issue stems from Digital Realty Trust’s firing of Paul Somers in 2014. Somers challenged his firing under the Dodd-Frank Wall Street […]
The Most Important Agency You’ve Never Heard Of…
The Office of Financial Research is meant to be the early-warning system for the next financial crisis. Is it doing its job?…