Regulating Wall Street is an Old Testament sort of affair: Like Leviticus, it is all about the persnickety details. But politicians try to talk about it in New Testament terms, with sinners and saints, salvation and damnation. Only they can’t agree on who the sinners are — the bankers or the bureaucrats — and wherein lies salvation. Such moralizing, however, does very little to shine light on the benefits and drawbacks of the byzantine 2010 banking regulations known as Dodd-Frank.
Dodd-Frank is a sprawling piece of legislation, divided into 16 sections that together represent the most drastic change in financial regulation since the Great Depression. The law created multiple government bodies tasked with monitoring and intervening in financial markets. In the event of crisis, it stipulates new ways to dissolve large banks without requiring government bailouts. The law also created the Consumer Financial Protection Bureau, increases the regulation of hedge funds and does several thousand other things, big and small.
View Full Article on The New York Times Magazine.
By Adam Davidson,
Picture: Andrew Rae (From The NYT Magazine)