- Category: Frontpage Articles
- Last Updated: Monday, 01 May 2017 09:05
- Published: Monday, 07 May 2012 14:19
- Written by Gregg Barak
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The Wall Street financial meltdown of 2007-08 that began with the housing-mortgage crisis in mid-year 2006 and that still persists in mid-year 2012 set in motion a regimen of regulatory reforms not seen since the Great Depression.
Had the regulatory regime of the past engaged in better risk management, the current financial crisis might not have occurred in the first place. Had the financial collapse not occurred, then the uncomfortable sequence of bailouts and exceptional favors for a privileged banking oligopoly “to right the U.S. system” would not have happened.
Now consider that Dodd-Frank was passed to rein in Wall Street risk-taking and oversized bonuses, to end bailouts and too-big-to-fail, and to prevent future financial meltdowns.
Dodd-Frank—consisting of 243 new formal rules and 2300 pages of regulations—was also designed to help protect consumer interests. However, these as-yet-to-be-implemented rules all but ignore the speculative bubbles that caused the financial debacle.