Republican win will not lead to Dodd-Frank repeal
Thursday 4 November 2010 - by Nicola York
A leading US think tank says that the Republicans winning control of the House of Representatives will not lead to a repeal of the Dodd-Frank Act, despite the majority of GOP members opposing the Bill.
"Related to that, they must be aware that any momentum to reverse parts of Dodd-Frank could be undercut by another major lawsuit, or even criminal charges, against major Wall Street players.
"The SEC suit against Goldman Sachs was a strong force that drove Dodd-Frank forward in its final phases and past crises show us that there are likely to be a number of additional legal actions over time as the crisis is dissected further."
But Elliott does believe that the Republicans will attempt some more limited actions to alter financial reform and says they may repeal a few elements of Dodd-Frank that they object to the most.
He adds: "At the extreme, they may threaten to withhold funding to implement certain aspects of the bill. But, the impact of the Republican victory will be far less than it would have been if Dodd-Frank had not yet been signed into law. Timing is everything in politics."
|Login||Register||Most read||Most commented|
Will markets in 2012 have a tougher time than 2011?