Dodd-Frank's Successful Predecessor: Echoes

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http://www.bloomberg.com/news/2012-02-10/dodd-frank-s-successful-predecessor-echoes.html


Ferdinand Pecora, Wall Street enforcer, March 1, 1938. Source: Library of Congress Prints and Photographs Division

More than a year and a half after the Dodd-Frank financial reform was enacted into law, many of its provisions are under attack.

Banks have fiercely opposed everything from its proposed limits on proprietary trading to its new rules on derivatives to its regulation of the muni-bond market. Republicans in Congress have opposed much of what the Consumer Financial Protection Bureau was established to do. Republican presidential candidates have called for the act's repeal. And regulators have missed three-fourths of the law's rulemaking deadlines.

"Less than half of Dodd-Frank will ever see the light of day," former SEC Chairman Arthur Levitt told Bloomberg Radio on Jan. 31.

As Congress's attempt to impose transparency on the financial industry comes under increasing strain, understanding the past provides some insight. There are myriad examples, but one stands out more than the others.

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1. Pecora was a public servant.

Chris "Hollywood is Lining My Pockets" Dodd is a disgrace.