Dodd-Frank

As one of the most antagonistic lobbying battles in Washington escalates -- where financial institutions like JPMorgan Chase and Visa are sparring with companies such as Walmart over credit card swipe fees -- a powerful ally is again sticking up for the retailers.

In what has become almost a grim ritual, Consumer Financial Protection Bureau director Richard Cordray faced a barrage of hostile questioning from Republican members of the House Financial Services Committee, who hammered him over everything from payday lending to regulatory relief for small banks.

Federal Reserve Chair Janet Yellen said Wednesday that the raft of rules and regulations brought on by Dodd-Frank and other international agreements since the financial crisis have made the banking sector and the public safer, but she said work to make those changes apparent to the public is continuing.

The chairmen of the House and Senate banking committees appear to agree that banks that hold higher capital should get a significant break on other regulatory requirements. But the odds of enacting a bill this year remain long.

The Federal Deposit Insurance Corp. approved a final rule Tuesday that will reconfigure bank assessments once federal reserves reach a statutory threshold.

House Financial Services Committee Chairman Jeb Hensarling signaled an aggressive assault on the Dodd-Frank Act on Tuesday, outlining a bill that would allow banks to be released from some of the 2010 reform law's regulations and Basel III requirements if they hold sufficient capital.

Risk is building in nonbank companies that are closely linked with regulated institutions but that have not faced the kind of stiff rules imposed on banks since the financial crisis.

Three-fourths of House lawmakers signed a bipartisan letter that calls on the Consumer Financial Protection Bureau to take more steps to carve out community banks and credit unions from onerous regulations. But will it make a difference?

Since the financial crisis, there has been a consensus that bankers need to repair their corporate cultures in order to fix the reputation damage during the housing collapse. But some bankers are saying it needs to be a more coordinated effort.

We are reminded frequently that policies with the best intentions often do not reach their intended recipients and at times lead to previously unforeseen issues.