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

Rebuilding American defense: A speech by Governor Bobby Jindal
image Smelling liberal, thinking conservative
image Stopping Ebola before it turns into a pandemic
image All too many reasons for pessimism about Europe
AEI on Facebook
Events Calendar
  • 20
  • 21
  • 22
  • 23
  • 24
Monday, October 20, 2014 | 2:00 p.m. – 3:30 p.m.
Warfare beneath the waves: The undersea domain in Asia

We welcome you to join us for a panel discussion of the undersea military competition occurring in Asia and what it means for the United States and its allies.

Event Registration is Closed
Tuesday, October 21, 2014 | 8:30 a.m. – 10:00 a.m.
AEI Election Watch 2014: What will happen and why it matters

AEI’s Election Watch is back! Please join us for two sessions of the longest-running election program in Washington, DC. 

Event Registration is Closed
Wednesday, October 22, 2014 | 1:00 p.m. – 2:30 p.m.
What now for the Common Core?

We welcome you to join us at AEI for a discussion of what’s next for the Common Core.

Thursday, October 23, 2014 | 10:00 a.m. – 11:00 a.m.
Brazil’s presidential election: Real challenges, real choices

Please join AEI for a discussion examining each candidate’s platform and prospects for victory and the impact that a possible shift toward free-market policies in Brazil might have on South America as a whole.

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