AFR in the News: Dodd-Frank “Tweaks” Questioned

“U.S. lawmakers and lobbyists who once backed repeal of the 2010 Dodd-Frank Act are now pushing for technical fixes to the law, and they’re getting a skeptical reception from the measure’s advocates,” Cheyenne Hopkins of Bloomberg News reports.

Having abandoned the idea of outright repeal, opponents are coalescing behind a campaign for what they depict as “technical fixes” with bipartisan support. But financial reformers question both the mild characterization of these proposals, and the breath of support for them.

“While some alterations to the act have bipartisan support in Congress, many Democrats say they remain wary of measures that might undermine the law that created the Consumer Financial Protection Bureau and mandated regulations to curb risky behavior by financial institutions deemed too big to fail,” Hopkins writes.

Dodd-Frank supporters worry that a technical change could “morph into a substantive change,” according to Lauren Kulik, a spokeswoman for Senator Sherrod Brown.

“Technical corrections are in the eye of the beholder,” said Senator Jack Reed, a Rhode Island Democrat who also sits on the committee.

“People telling the story about how there’s a bipartisan consensus are actually campaigning for significant rollbacks of the law,” said AFR executive director Lisa Donner.