Dodd-Frank, the 2,300-page financial "reform" monstrosity spearheaded by Capitol Hill corruptocrats, turned 1 this week. It made too-big banks bigger. It made too-risky incentives riskier. It made a lousy economy lousier. Billed as a "consumer protection" act, Dodd-Frank has succeeded phenomenally -- in protecting and stimulating the business-stifling business of government.
Dodd-Frank is a tyrannical triumph of rule-makers, lobbyists and other non-elected spongers over taxpayers. If you don't want an unseemly glimpse into the self-serving, sausage-making process that feeds the insatiable Beltway industry, read no further. The law's implementation process is so far-reaching and Byzantine that every member of Congress should be suffering migraines from it.
Quite expectedly, the feds have met a scant 12 percent of rule-making requirements dictated by the grandstanding Dodd-Frank law as of July 1. According to legal and regulatory watchdogs Davis Polk and Wardwell, regulators missed 131 deadlines over the past year. Moreover, the Securities and Exchange Commission and the U.S. Commodities and Futures Trading Commission have been granting "temporary relief" deferrals (de facto waivers a la Obamacare) left and right to targets in the swaps industry.
Here is just a brief sample of "upcoming activity" on Dodd-Frank (with many rule-making deadlines still to be determined) published on the Securities and Exchange Commission website:
Section 342: Create and staff Office of Minority and Women Inclusion (pending reprogramming approval by appropriators)
Section 911: Create new Investor Advisory Committee (pending appointment of Investor Advocate)
Sections 915 and 919D: Create and staff Office of Investor Advocate (pending reprogramming approval by appropriators)
Section 919: Issue rules, as the Commission deems appropriate, designating documents or information that must be provided by a broker or dealer to a retail investor before the purchase of an investment product or service
Section 921: Issue rules, as the Commission deems appropriate, addressing agreements that require customers or clients of any broker, dealer or investment adviser to arbitrate disputes arising under the Federal securities laws
Section 932: Create and staff Office of Credit Ratings (pending reprogramming approval by appropriators)
Section 979: Create and staff Office of Municipal Securities (pending reprogramming approval by appropriators)
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