July 25, 2010
Last week, President Obama signed into law the Dodd-Frank Wall Street Reform bill – hailed as the most sweeping overhaul of US financial regulation since the 1930s.
“Because of this law, the American people will never again be asked to foot the bill for Wall Street’s mistakes,” Obama boomed at the schmaltzy signing ceremony, amid bursts of applause.
“These reforms will put a stop to a lot of the bad loans that fuelled this debt-based bubble,” the President gushed to America and the rest of the world. “This bill also empowers consumerse_SLpsdelivering the strongest consumer financial protections in history.”
It would be reassuring if we could agree with Obama, concluding that Dodd-Frank will help to prevent the next systemic crisis and associated bail-out of “too-big-to-fail” banks. Reassuring, but wrong.
This article was posted: Sunday, July 25, 2010 at 11:48 am