Former Senator Chris Dodd said Monday the law that bears his name can take credit for dramatically improving the corporate culture at financial services companies.
He noted since President Obama signed the act into law on July 21, 2010, many banks and other financial services businesses have established risk committees for the first time.
During his only joint appearance with former Congressman Barney Frank marking the five-year anniversary of the law, Dodd said other major achievements of the act include the establishment of the Consumer Financial Protection Bureau, the program at the Securities and Exchange Commission allowing whistleblowers to be paid for tips on securities laws violations, and the mandate for an advisory vote on executive pay by shareholders at publicly held companies.
He also listed transparency in derivatives markets as a major benefit.
In contrast to Dodd (currently chairman and CEO of the Motion Picture Association of America), Frank said the law’s most important outcome was the end of toxic mortgages that led to five million families losing their homes in the aftermath of the financial crisis.
While House and Senate Republicans routinely attack the financial regulatory reform law, Frank said they recognize it has widespread public support. As evidence, he noted the Republican-controlled House has voted 50 times to void Obamacare, but not once to repeal Dodd-Frank.
Dodd and Frank spoke in Washington, D.C., at a forum presented by Better Markets, an advocacy group that was established to promote aggressive enforcement of the law.