Another Look at Unnecessary, Confidence Destroying Dodd-Frank
Former Chairman and CEO of Wells Fargo Bank Dick Kovacevich lays out what caused the 2008 financial crisis. More importantly, he also tells why Congress’ answer to it, Dodd-Frank, makes the conditions worse, not better, especially for small business.
In the second video below the CNBC Squawk Box crew is joined by Bill Isaac, Fifth Third Bank Chairman and former FDIC Chairman, who agrees that Dodd-Frank was not necessary“I can’t imagine being a small bank today under Dodd-Frank. It would be impossible to comply with Dodd-Frank and make any money.” – Dick Kovacevich.
“We have exactly the wrong regulatory policies in place, it’s upside down.” – Bill Isaac
In our view Kovacevich hits nails on heads with his comment about confidence in the second video. See if you agree.
Edit to add a third segment. We did not realize that the second video cut off before important commentary by Bill Isaac, who says in clip three: “If we don’t do something about Dodd-Frank it’s going to destroy the community banking system in the U.S. and that’s going to be a shame for all of us. … Dodd-Frank wouldn’t have prevented the last crisis, won’t prevent the next one – we do need sensible reform and it begins with the regulators. We have too many regulators – too many things drop through the cracks – we do need to have a much stronger, simpler regulatory system.”
Comment: Support leaders who will repeal ObamaCare and Dodd Frank. Fire those who won’t.