Why do we have the Dodd-Frank Act? It was Barak Obama's "solution" to the financial meltdown of 2007-2008. And it was built on the premise that banks are bad. The Act has laid 1207 new rules, 53,486 pages on banks and lenders. It has cost us some 1500 community banks and benefited large corporate banks.
Let's not forget that it was government mandates, courtesy of the Clinton Administration, that caused the collapse. They forced banks to lend to people who had little or no skin in the game. In an attempt to make home ownership affordable, banks were required to lend to people withno, or little, down payment and shaky credit. Not wanting these bad loans on the books, banks bundled them and sold them to investors. At the time of the crash more than 50% of the loans on the books were subprime.
Dodd-Frank was a piece of legislation crafted to address a problem. But it was done without the understanding of the real issue which was bad lending practice.
Today home ownership is at a record low, so what does government want to do? It is offering a plethora of low or no money down mortgages.
So, Dodd-Frank has not fixed a problem, it has created a behemoth of a new bureaucracy and has hurt the people liberals profess to want to help and helped the big banks that liberals profess to want to limit. Another example of legislation gone awry.
