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Obama warns Republicans would revoke Dodd-Frank

Monday 25 October 2010 - by Andrew Hickley

US President Barack Obama has warned that a victorious Republican party could try to repeal his administration’s landmark financial regulatory reforms, claiming that such a move would be a “terrible mistake”.

In his weekly internet and radio address on Saturday, Obama argued that the new financial structure and rules brought in by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act were necessary to fix a “broken system”.

However with Republican representation expected to increase following November’s Congressional elections, the President cautioned that advances enabled by the legislation could be cast aside in the search for votes.

“Despite the importance of this law, top Republicans are beating the drum to repeal all of these reforms and consumer protections,” Obama said.

“Recently, one of the Republican leaders in the Senate said that if Republicans take charge of Congress, repeal would be one of the first orders of business.


"I think that would be a terrible mistake.”

Obama claimed that Republican politicians are looking to score a “political victory in an election year” by revoking Dodd-Frank, which he believes is essential to “rein in the secret deals and reckless gambling” of Wall Street.

Among the measures included in the Dodd-Frank Act is a “resolution plan” ensuring the safe liquidation of systemically important financial institutions in order that taxpayer money is not used to bail out firms.

Other reforms in the 2,319-page legislation include increased consumer protection and higher levels of transparency for regulating financial markets.

All measures are due to be in place by 16 July 2011.


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