U.S. Deputy Treasury Secretary Neal Wolin said there’s no evidence that the Dodd-Frank financial overhaul law has had any “negative effect” on the financial system.
Wolin, in an interview with CNBC television today, also said the costs of implementing Dodd-Frank are a “pittance” compared with those associated with the financial crisis.
“I think that there is no evidence frankly that the Dodd- Frank legislation or the bits and pieces that are being implemented as we go forward have had any negative effect on our financial system,” Wolin said. “Fundamentally, it is putting our financial system in a much stronger, much safer, much more robust position.”
The financial industry has resisted the overhaul contained in the Dodd-Frank Act of 2010. The law’s ban on proprietary trading, known as the Volcker rule, has resulted in more than 17,000 comment letters, the most of any Dodd-Frank provision and one of the highest for a financial regulation.
“People are having their ability to express their perspectives, and those perspectives will be factored in,” Wolin said on CNBC.
The Dodd-Frank law was enacted by Congress and signed into law by President Barack Obama to prevent a repeat of the market tumult that followed the September 2008 bankruptcy of Lehman Brothers Holdings Inc.
“We should be attentive to the costs of compliance,” Wolin said. “The real question to ask is, ‘What are the costs relative to not having these reforms?’”
“Those costs are a pittance relative to the costs that we all had to endure, we’re still enduring frankly, from the financial crisis that we went through,” the Treasury Department’s No. 2 official said. “It is important for us to make sure that the country is put on a sounder footing.”