Posted June 17, 2014Between June 16 and 17, NACHA Government Relations attended "After Dodd-Frank: The Future of Financial Markets” hosted by the CATO Institute and George Mason University, in Washington.
Capitol Hill speakers included Chairman Jeb Hensarling, House Financial Services Committee, and Chairman Patrick McHenry, Oversight and Investigations Subcommittee. Both delivered keynote messages focused on implementation hurdles after the Wall Street Reform and Consumer Financial Protection Act (Dodd-Frank) was signed into law, four years ago. The Consumer Financial Protection Bureau (CFPB) discussion was led by former official Raj Date, who narrowed in on risk, protection and moral hazard.
As with all major financial reforms, participants were divided over the applicability and feasibility of Dodd-Frank to prevent another financial crisis. The potential of more “bailouts” was deeply contentious as some argued Dodd-Frank went too far and unduly restricted financial institutions. Others expressed that government involvement was central to curing the market. Of the new agencies created by Dodd-Frank, including the Financial Stability Oversight Council, the Office of Financial Research, and the Bureau of Consumer Financial Protection, the CFPB received the most attention. Much more is asked of regulators than in a normal rule-making under Dodd-Frank, which participants bolstered their commentary on as support for continued challenges faced by Capitol Hill, banking regulators and federal agencies.