Hear Raj Date on NPR's All Things Considered with Lakshmi Singh talking about the ChoiceACT's impact on the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Last week, the House passed a Republican bill rolling back large parts of Dodd-Frank. While that bill isn't expected to go far in the Senate, the move could build momentum for other changes. To find out more, we reached Raj Date. He's a former deputy director of the U.S. Consumer Financial Protection Bureau and, now, runs a small investment firm called Fenway Summer. I began by asking him to remind us what Dodd-Frank does.
RAJ DATE: Let me just clear up the first confusion that people might have. Like, what is a Dodd, and what is a Frank? It's the name of the big Wall Street reform package, named after the head of the Senate Banking Committee at the time and the head of the House Financial Services Committee at the time, Chris Dodd and Barney Frank. If you think back - and, hopefully, people can still remember - the sort of calamitous financial crisis that faced the United States - and, indeed, the world - back in 2007, 2008, 2009. Unemployment doubled. Millions of people lost their homes.
It was bad on pretty much every way in which you would evaluate the performance of the financial system. We had terrible decisions that were made. We had firms that were close to bankruptcy and insolvency as a result. We had a system that allowed one firm's problems to metastasize and affect other firms. And then, finally, we had regulators that seemed to be one or two steps behind every step of the way. And so what Dodd-Frank essentially tried to do is take a universal approach to changing Wall Street and banking regulation that would fix each of those problems.
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