Dodd-Frank Would Survive Romney Presidency

GOP nominee’s pledge to kill financial reform legislation collides with Wall Street’s agenda.

Instead, Romney may give the financial industry something it wants more: a revamped Dodd-Frank that would accommodate some of the most profitable and riskiest activities while preserving a patina of protection for investors and consumers.

“There’s this perception that banks hate everything in Dodd-Frank, and that’s just not true,” said Mark Calabria, a former top Republican aide on the Senate Banking Committee. “From a bank’s perspective, you’d rather have piecemeal reform of Dodd-Frank, not only because there are things in the law you want to keep, but also because you’re going to have more control over the process.”

Change That Matters

For banks spending billions of dollars to comply with the rules dictated by the 2,300-page law -- and millions on lobbying to alter it -- these are the changes that really matter.

Volcker Rule

The provisions that banks and their lobbyists have said go too far, such as bans or limits on trading activities including the so-called Volcker rule that bars banks from trading for their own account, have been specifically targeted by Republicans, who almost unanimously opposed the law in 2010.

Proprietary Trading

The “bulk of the higher projected costs” come from the Volcker rule, S&P said, citing the ban on proprietary trading that elicited more than 17,000 comment letters last year. The rule, which hasn’t been finalized by regulators, has the potential to increase the cost of borrowing for companies as it reduces liquidity in bond markets, according to Republicans.

Piece by Piece

Senator Richard Shelby, the top Republican on the Senate Banking Committee, gave a speech in July outlining what he would do if he took the gavel in a Republican-led Senate in 2013.

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