"A critical mass of angst and dissatisfaction with the Dodd-Frank Act and Basel III is opening the door to change," writes American Banker’s Editor-at-Large, Barbara Rehm. With legislators who supported the bill now looking to modify it, she says the time is ripe for the industry to constructively collaborate on a reform.
Rehm wants you to check out Karen Shaw Petrou’s writing on the matter:
"Petrou, the sharpest mind analyzing banking policy today — maybe ever — has just completed a comprehensive, three-part assessment of the regulatory landscape (the three parts: Strategic Regulatory Landscape, Operational Impediments to Effective Financial Regulation and Assessment of Resolution Regime for SIFIs) Her stark conclusion: even if regulators did everything called for in Dodd-Frank, and did it perfectly, financial services supervision would still be a mess."
Here at DFRW we’ve been watching the ping-pong match about whether or not Dodd-Frank ends too-big-to-fail policies. Petrou's take explains the lack of consensus: "Does it work? The answer is we don't know because it hasn't been tested, but built out as the FDIC is planning, it should," Petrou tells Rehm. "But it won't work if the regulators have no confidence in it."
For the full piece see "Hate Dodd-Frank? Here's How You Change It" (may require subscription).