In just a couple of weeks, Dodd-Frank law ignominiously celebrate its first birthday.
The WSJ, working with PolitiFact — the Pulitzer Prize-winning fact-checking service of the St. Petersburg Times — looked at “some of the most controversial statements about Dodd-Frank, how PolitiFact scored them.”
These are the more interesting statements told by various Congress critters about the regulatory Dodd-Frank law:
• Rep. Elijah Cummings: Last month, the Maryland Democrat said the budget for the Consumer Financial Protection Bureau “is only about 1% of the amount banks generate just from late fees and overdraft fees.” (TRUE)
• House Speaker John Boehner: In November, the Ohio Republican who gave a press conference after the GOP retook the House. Mr. Boehner was asked about the party’s priorities. Among them, he said, would be a scaling back Dodd-Frank, which requires “358 regulatory filings,” he said. (TRUE)
• President Obama: In October, he appeared on “The Daily Show with Jon Stewart” and said stabilizing the financial industry ultimately “will cost less than 1% of GDP,” which is less than the 2.5% to fix the savings and loan crisis of the 1980s (HALF-TRUE)
• Oregon Democrat Kurt Schrader: Said more Republicans voted for the bank bailouts in 2008 than Democrats. Actually, 171 Democrats voted yes, compared to 91 Republicans. (FALSE)
• Jeff Greene, a Georgia Republican: Mr. Greene argued that Dodd-Frank’s restrictions on derivatives were too onerous. Without them, he argued, there “would be no bank loans at all today. (BARELY TRUE)
• Sen. Sherrod Brown: The Ohio Democrat said last April that the bill will end “too-big-to-fail.” (BARELY TRUE)
• Sen. Mitch McConnell: The Florida Kentucky Republican said Dodd-Frank “actually guarantees future bailouts of Wall Street banks.” He said the bill sets up a “$50 billion slush fund.” (FALSE)
Good stuff from David Weidner.
The Truth (and Lies) About Financial Regulation
WSJ July 7, 2011