Democrats on the Financial Services Committee have released a report defending the progress of the Dodd-Frank Act, arguing that the bill reduced the risk of bailouts by providing regulators with tools to address systemic threats.
Meanwhile, Republicans on the House Financial Services Committee released a report finding that the regulatory structure created by the Dodd-Frank Act does not sufficiently address the problem of too-big-to-fail financial institutions. The report argued that the orderly liquidation authority created by Title II of Dodd-Frank is untested and continues to leave taxpayers exposed to the costs of winding down a failing firm.
While ABA has opposed several major Dodd-Frank provisions and its overall regulatory burden, ABA and its member banks of all sizes share the law’s goal of ending too big to fail. They support policies that ensure taxpayers do not shoulder the burden when a large financial firm must be wound down.
Read the Democrats’ report.
Read the Republicans’ report.