Financial 411: A Year After Dodd-Frank, New Rules Behind Schedule
Tuesday, June 14, 2011
It's been nearly a year since sweeping changes to the financial regulatory system were signed into law. That law, known as Dodd-Frank, is supposed to create a new set of rules for the banking industry to prevent another so-called Great Recession.
But many of the required rules still haven't been written, much less implemented. Vacancies in the Obama administration and in other top government posts are only adding to the delay. And on Tuesday, the Commodities Futures Trading Commission voted to delay certain rules that were to take effect next month until the end of December.
Louise Story, Wall Street and finance reporter for The New York Times, said there are a few reasons why the rules are delayed.
"One is that they didn't give much more money or staffing to the regulators, like the Securities and Exchange Commission or the Federal Reserve, that are supposed to create them," she said. "But it's also because the banks are really pushing to slow these down. They would love nothing more than for some of the rules not to happen at all, or for them to happen in a much longer time frame because the rules threaten a lot of their profits."
Story talks about some of the rules that are delayed —and there are at least 12 of them — what industries they're meant to regulate, and some other factors contributing to their slower-than-expected implementation.
Stocks closed higher for the third day this month, after retailers had better sales in May than expected. All three major indexes had their best day so far in June. The Dow added 123 points, closing at 12,076. The S&P 500 grew 16 points, to 1,288. The NASDAQ gained 39 points, ending the day at 2,679