This July marks the fourth year since the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act(“Dodd-Frank”). With the anniversary comes much debate surrounding the effects of the legislation and whether increased regulatory oversight is necessary. A recent pollconducted by Lake Research Partners on behalf of Americans for Financial Reformand the Center for Responsible Lendingindicates that most voters support tougher reforms aimed at Wall Street.
The poll found that a majority of Americans, regardless of party affiliation, support increased regulation of the financial services industry. For example, 96% of Democrats, 92% of Independents, and 89% of Republicans say that it “ is important to regulate financial services and products to make sure they are fair for consumers.” The poll also found that 78% of voters agree that the financial services industry needs further regulation and stricter enforcement and rules.
According to the poll many voters are “ deeply concerned about the political influence of Wall Street financial companies.” A majority (56%) of voters say they would be less likely to vote for a candidate for Congress if that candidate received large campaign donations from the financial services and banking sectors. While many Americans continue to express concerns regarding the effectiveness of Dodd-Frank some politicians are also weighing in on the legislation. In a recent bipartisan opinion pieceDemocratic Senator Elizabeth Warren and Republican Senator John McCain stated that “ The chances of another financial crisis will remain unacceptably high as long as there are financial institutions that are “too big to fail” — entities that are deemed so important to the overall health and functioning of the markets that their collapse would bring down the entire financial system.”
As regulators and lawmakers continue to implement the extensive law, the financial industry must be prepared to adapt to the changing rules and requirements as they become enacted.
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