As the one-year anniversary of passage of the Dodd-Frank Act nears, Rep. Barney Frank, D-Mass., expressed his views on Monday about how the law he co-authored with former Democratic Senator Christopher Dodd is being implemented.
During a press conference at The National Press Club in Washington, Frank said that as the July 21 anniversary draws near, it’s time to “make some judgments” about how the law is progressing. After a year of “study, examination, criticism and advocacy,” he said, Dodd-Frank is “holding up pretty well” with “very few calls for substantial amendments” to be made to it.
The real “strength” of the Dodd-Frank Act, Frank said, is that it “sets forth some very important principles, but gives the regulators the ability to apply them in practice.”
Frank did comment several times as to his frustration with the lack of funding given to the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) by his Republican counterparts. The GOP, Frank argued, are “using the deficit crisis to under fund the SEC and the CFTC.” Republicans “want to turn the SEC into a profit center,” Frank continued. “The SEC will bring in more money through its regulatory system than it will be given to run it.”
This lack of funding is creating a “catch-22,” Frank said. First, “deny the SEC and CFTC adequate funding; they, in turn, are not able to deal with the rulemaking requirements they have, and because they haven’t been able to move as quickly on the rules, [Republicans] will announce that the rules must be abolished.” This attack on these agencies’ funding, Frank continued, is coming from the “ideologues” in the Republican party.