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Dodd-Frank law to stay on the books

Nov. 9, 2012 at 6:31 PM   |   Comments

WASHINGTON, Nov. 9 (UPI) -- U.S. President Barack Obama's re-election was also a victory for a 2010 law intended to provide more effective financial regulation, financial analysts said.

The president signed the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010. His Republican challenger, Mitt Romney, promised to repeal it.

Experts say the impact of the law depends on the specific regulations written to enforce it, The Washington Post reported. But the stock price of major banks fell Wednesday with investors anticipating the law will hurt their bottom line.

Jaret Seiberg, an analyst at Guggenheim Partners, predicted the administration will not push for drastic regulations.

"To get economic growth back in a meaningful way, you need regulations that won't choke off the supply of credit to the economy," he said. "So you'll see more moderation across the board."

Elizabeth Warren, who pushed for strict regulation as an administration official, is returning to Washington as a Democratic senator from Massachusetts. Analysts say she could have an influence on the way Dodd-Frank is implemented.

Warren could also find some unlikely allies in an effort to break up the biggest banks, Shaw Petrou of Federal Financial Analytics said, speculating Warren might join forces with some Republicans like Sen. Richard C. Shelby, R-Ala., who agree too big to fail is too big.

© 2012 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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