U.S. and European Officials Push Back Against Repeal of Dodd-Frank

In the wake of President Trump declaring his administration's aim to "do a number on Dodd-Frank" and signing an executive order to review the 2010 financial reform law, several prominent U.S. and European officials are pushing back.

According to a recent CNBC article, former House Financial Services Committee Chairman Barney Frank believes that the law needs to be reformed, but not completely repealed.

Frank, whose work on the bill and leadership role in the House led to his name being attached to the final legislation, told CNBC's Squawkbox that he believes there are some improvements to be made, including raising the $50 billion threshold for what designates a systemically important financial institution. "Any comprehensive legislation needs changes," Frank told CNBC.

He went on to say that he agreed the law unfairly burdened smaller lenders, but that he believed there was little economic evidence that loans were withheld due to the law’s requirements. "This was not a decision by a group of politicians to make it harder to run the banks. This was a response to a pattern of irresponsibility and error."

Similarly, in an address to the European Parliament's Committee on Economic and Monetary Affairs, Mario Draghi, president of the European Central Bank, pushed against the idea of repeal. As quoted in Euronews, Draghi called the idea of relaxing bank rules "very worrisome". "I think to a great extend the fact that we are not seeing the developments of significant financial stability risk is the reward of the action that legislators and regulators and supervisors had been undertaking since the financial crisis erupted," he added.

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