The Dodd–Frank Wall Street Reform and Consumer Protection Act Will Require a Change in Regulatory Culture and Mindset to Be Effective
48 Pages Posted: 24 Dec 2011 Last revised: 10 Nov 2016
Date Written: November 4, 2011
The Dodd-Frank Act constitutes the most significant reform of financial regulation in the United States since the 1930s. Some of its provisions are bold, particularly in the areas of consumer protection and derivative trading. However, the political challenges for law reformers and regulators in the wake of the global financial crisis are far from over. The Act is inchoate. The full scope and nature of the new financial regulatory system will take several years to evolve as the mandated studies and rule making are completed and implemented. We argue that the extent to which the reforms achieve their stated objectives will depend most critically on three factors: (i) the competency, integrity and forcefulness of the federal regulators, (ii) their ability and willingness to supervise the finance industry on an integrated basis, and (iii) a fundamental change in the regulatory culture and mindset.
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