AEI's Wallison on the Destructiveness of the Dodd-Frank Act

Thought you might be interested in the latest AEI Financial Services Outlook "The Dodd-Frank Act: Creative Destruction, Destroyed" by former Treasury and White House official Peter Wallison in which he spells out what the Dodd-Frank Act will unleash on the country and the consequences of the provisions included in the act. Wallison warns that the wholesale changes to the financial system will be lasting and are hard to explain except as the triumph of a fundamentally different view of the government's role in the U.S. economy-- a view as a corporatist political model more characteristic of Europe than America.

In particular, Wallison focuses on three key points:

  • The Dodd-Frank Act gives the Federal Reserve unprecedented control over the largest firms in the U.S. financial system which could result in a public-private partnership where the Fed protects the largest firms from competition and failure and they in turn follow the government's directions.

  • In the interest of protecting consumers, the act sacrifices the basic protections built into the U.S. Constitution, creating an agency--the Consumer Financial Protection Bureau--that is answerable to no one.

  • Ultimately, the act's effort to suppress risk taking will result in a decline in U.S. competitiveness, innovation, and economic growth.

The Outlook is available here:

To contact Peter Wallison, or for other media inquiries, please e-mail or call Veronique Rodman at [email protected] or 202.862.4871. Mr. Wallison's assistant can be reached at [email protected] or 202.419.5212.

Also Visit
AEIdeas Blog The American Magazine

What's new on AEI

Making Ryan's tax plan smarter
image The teacher evaluation confronts the future
image How to reform the US immigration system
image Inversion hysteria
AEI on Facebook
Events Calendar
  • 01
  • 02
  • 03
  • 04
  • 05
Wednesday, September 03, 2014 | 9:00 a.m. – 10:30 a.m.
From anarchy to Augustus: Lessons on dealing with disorder, from Rome’s first emperor

We invite you to join us for two panel discussions on how Augustus created order from chaos 2,000 years ago, and what makes for durable domestic and international political systems in the 21st century.

Event Registration is Closed
Wednesday, September 03, 2014 | 12:00 p.m. – 1:30 p.m.
Multiple choice: Expanding opportunity through innovation in K–12 education

Please join us for a book launch event and panel discussion about how a marketplace of education options can help today's students succeed in tomorrow's economy. Attendees will receive a complimentary copy of the featured book.

Thursday, September 04, 2014 | 12:00 p.m. – 1:30 p.m.
How conservatives can save the safety net

Please join us for a luncheon event in which our panel will discuss what conservatives can learn from how liberals talk and think about the safety net and where free-market economics, federalism, and social responsibility intersect to lift people out of poverty.

No events scheduled this day.
No events scheduled this day.
No events scheduled today.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.