Mary Miller, the U.S. Treasury Department’s assistant secretary for financial markets, warned today against curtailing the Dodd-Frank law.
“Scaling back or repealing major parts of the Dodd-Frank Act, or not providing regulators with the funds they need to implement the act, will leave our economy exposed to a cycle of collapses and crises, with potentially devastating repercussions,” Miller said in remarks prepared for a speech in New York today.
Miller was speaking at a conference held by the Securities Industry and Financial Markets Association, Wall Street’s biggest lobbying group, to mark the one-year anniversary of Dodd-Frank, which was signed into law on July 21, 2010.
House Republicans, swept into power in the November 2010 elections, are pushing bills to revise, delay or repeal parts of the law affecting areas including the Consumer Financial Protection Bureau, derivatives rules and registration requirements for private-equity advisers. Regulators are still working to write hundreds of rules mandated by the law.
“We can’t allow loopholes, gaps and weaknesses to undermine the fundamental strength of our reform,” Miller said. “The leaders of the major U.S. financial institutions should be champions, not opponents, of ensuring that regulators have sufficient resources to achieve their objectives.”
It’s essential that regulators “have the critical resources necessary to do their jobs effectively,” Miller said. “If resources are not adequate, we simply will not be able to bring the care and judgment to the process that will allow the new rules to work.”
Miller was nominated by President Barack Obama on July 1 to be promoted to Treasury undersecretary for domestic finance.