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: http://www.aei.org/outlook/100983.

To contact Peter Wallison, or for other media inquiries, please e-mail or call Veronique Rodman at vrodman@aei.org or 202.862.4871. Mr. Wallison's assistant can be reached at steffanie.hawkins@aei.org or 202.419.5212.

Also Visit
AEIdeas Blog The American Magazine

What's new on AEI

image The money in banking: Comparing salaries of bank and bank regulatory employees
image What Obama should say about China in Japan
image A key to college success: Involved dads
image China takes the fight to space
AEI on Facebook
Events Calendar
  • 21
    MON
  • 22
    TUE
  • 23
    WED
  • 24
    THU
  • 25
    FRI
Wednesday, April 23, 2014 | 12:00 p.m. – 1:30 p.m.
Graduation day: How dads’ involvement impacts higher education success

Join a diverse group of panelists — including sociologists, education experts, and students — for a discussion of how public policy and culture can help families lay a firmer foundation for their children’s educational success, and of how the effects of paternal involvement vary by socioeconomic background.

Event Registration is Closed
Thursday, April 24, 2014 | 12:00 p.m. – 1:30 p.m.
Getting it right: A better strategy to defeat al Qaeda

This event will coincide with the release of a new report by AEI’s Mary Habeck, which analyzes why current national security policy is failing to stop the advancement of al Qaeda and its affiliates and what the US can do to develop a successful strategy to defeat this enemy.

Friday, April 25, 2014 | 9:15 a.m. – 1:15 p.m.
Obamacare’s rocky start and uncertain future

During this event, experts with many different views on the ACA will offer their predictions for the future.   

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