Beyond Dodd-Frank
Barney Frank's failure to recognize this impressive record of accomplishment casts doubts on his powers of observation -- or his objectivity. It also invites closer scrutiny of Frank's own Congressional record -- especially of the Dodd-Frank financial reform bill, his signature achievement in Congress.
While that bill represents an improvement from the conditions that led to the 2008 financial crisis, it could have been a lot better and much more work must be done to protect the economy. That's why 170 economists have signed a letter supporting Bernie Sanders' plan to break up too-big-to-fail banks and enact a 21st-century version of the Glass-Steagall Act.
Neel Kashkari, the "bailout czar" turned Republican politician who now runs the Federal Reserve Bank of Minneapolis, convincingly argues that "while significant progress has been made to strengthen our financial system, I believe the [Dodd-Frank] Act did not go far enough."
"I believe," Kashkari says, "the biggest banks are still too big to fail and continue to pose a significant, ongoing risk to our economy."
That risk is political, as well as economic. The banks' ongoing and growing political power was demonstrated by the passage of the so-called "Citigroup amendment," which was largely written by lobbyists for that bank and benefited only the very largest financial institutions.
Dodd-Frank left too much authority in the hands of regulators, many of whom have yet to act on some of the bill's key provisions. It continues to permit excessive risk-taking, potentially leaving taxpayers on the hook for future bailouts.
Before Barney Frank repeats his unfounded attacks on Bernie Sanders' record, he may want to take a second look at his own.
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