THE FRANK-DODD ACT

The name of the new package of financial regulations is The Frank-Dodd Act. Given what we know about Barney Frank, there must be more than one good joke there, but we have decided to let it be. We are not going to sully this site by saying things like ‘In naming the law, they were wise to use a dash and not an ampersand’.

By the time you read this, the bill may have been signed into law but it will not yet have been written. We say this because much of it is vague, leaving the de facto law up to the regulators to determine. For example, The Act requires each federal agency to establish an Office of Minority and Women Inclusion which is to be responsible for all matters relating to diversity in management, employment and business activities. What does that mean? What is the law? It is not yet written. The law will be, what the agency yet to be formed, says it will be.

The Act establishes a Bureau of Consumer Financial Protection with the power to close down a business that the Bureau determines poses a risk to consumers due to some measure of financial instability, instability as determined by the Bureau. In this regard one might say there is no law to observe, no law you must break for the Bureau to be able to close you down.

“No one will know until this is actually in place how it works”. Now there’s a profound truth coming straight from a Democrat, the man who wrote the bill, a man who knew whereof he spoke.

This law is to the financial industry, what Obamacare is to the health-care industry – an enormous expansion of government control over a significant section of the American economic system. It is ingenious to the extent that it empowers bureaucracies to govern by rule change without the need for legislative action.

Both The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act (all one law known as Obamacare) and the Frank-Dodd Act are major advancements in Obama’s march toward the goal of a grand centrally planned state.

Bob B<!– AddThis Button BEGIN –>

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