Financial Reform: Another Obama Success

Paul Krugman highlights the Obama administration’s success with its “other big push, financial reform.”

“The Dodd-Frank reform bill has, if anything, received even worse press than Obamacare, derided by the right as anti-business and by the left as hopelessly inadequate. And like Obamacare, it’s certainly not the reform you would have devised in the absence of political constraints.”

Dodd-Frank gives regulators Ordinary Liquidation Authority “so that in the next crisis we can save ‘systemically important’ banks and other institutions without bailing out the bankers.”

“Bankers, of course, hate this idea; and Republican leaders like Mitch McConnell tried to help their friends with the Orwellian claim that resolution authority was actually a gift to Wall Street, a form of corporate welfare, because it would grease the skids for future bailouts.”

“Did reform go far enough? No … But Wall Street and its allies wouldn’t be screaming so loudly, and spending so much money in an effort to gut the law, if it weren’t an important step in the right direction. For all its limitations, financial reform is a success story.”

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