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How Wall Street Killed Financial Reform

The many ways to dismantle a law: How the 2,300-page Dodd-Frank Wall Street Reform and Consumer Protection Act has been attacked and weakened since its passage in 2010:

"The fate of Dodd-Frank over the past two years is an object lesson in the government's inability to institute even the simplest and most obvious reforms, especially if those reforms happen to clash with powerful financial interests. From the moment it was signed into law, lobbyists and lawyers have fought regulators over every line in the rulemaking process. Congressmen and presidents may be able to get a law passed once in a while – but they can no longer make sure it stays passed. You win the modern financial-regulation game by filing the most motions, attending the most hearings, giving the most money to the most politicians and, above all, by keeping at it, day after day, year after fiscal year, until stealing is legal again. 'It's like a scorched-earth policy,' says Michael Greenberger, a former regulator who was heavily involved with the drafting of Dodd-Frank. 'It requires constant combat. And it never, ever ends.'"
PUBLISHED: May 11, 2012
LENGTH: 26 minutes (6625 words)