A Treasury Department under secretary laid out on Thursday the reasons why the Obama administration believes the two-year-old Dodd-Frank Wall Street Reform and Consumer Protection Act is indeed working.
Mary Miller, under secretary of domestic finance, said that implementation of Dodd-Frank is “well under way,” with “critical elements” of Wall Street reform set to be in place by year-end.
As Dodd-Frank reaches its two-year anniversary on Saturday, Miller said on a conference call with reporters that “the worst thing that can happen is for people to forget what the economic crisis created for our economy.” The financial crisis of 2008, she said, is the reason why the nation’s economic recovery “has taken so long.”
The cost of inadequate oversight of Wall Street, Miller said, is what led to the financial crisis—$19 trillion lost in household wealth from second quarter 2007 to first quarter 2009; 8.7 million jobs lost between December 2007 and February 2010; and 6.3 million more Americans thrown into poverty between 2007 and 2009.
But Dodd-Frank, Miller argued, is providing a “sound foundation” to get the nation’s economy back on track. Since the passage of Dodd-Frank in 2010, Miller said that our financial system is now safer and stronger; consumers are more empowered and protected; financial markets are more transparent; regulators have new tools to monitor and mitigate threats to the financial system; and implementation steadily continues despite attempts by opponents to roll back, delay and defund reforms.