The issues
Romney vs. Obama on Wall Street reforms
Mitt Romney and Barack Obama differ on how much government regulation should be placed on Wall Street and the nation’s financial sector. Romney wants to repeal and replace Dodd-Frank, the legislation that tightened government controls over financial institutions. He believes Wall Street needs some government control, but the current level is too high. Obama defends the reforms. He believes they will protect the nation from another financial crisis.
Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act in July, 2010, following the broad financial collapse that sent the country into a recession. Among other things, the law requires banks to set aside more capital to protect their balance sheets in tough economic times.
In the Oct. 3 Presidential debate, Romney said the tougher regulations cause “unintended consequences” for smaller, local bank that may be unable to keep the required capital on hand. “This is the biggest kiss that's been given to New York banks I've ever seen,” Romney said. “This is an enormous boon for them. There've been 122 community and small banks have closed since Dodd- Frank.”
The law also protects consumers by requiring financial institutions to be more open with the American public. Dodd-Frank also created the Consumer Financial Protection Bureau, which is meant to help educate Americans about financial products and services, including mortgages and credit cards. The reforms are intended to ensure that banks and other financial companies are following the laws. Romney has not said that he does not support the consumer bureau, but he has expressed concern that it creates difficulty for banks and could decrease lending to small businesses.
--Samantha Liametz
Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act in July, 2010, following the broad financial collapse that sent the country into a recession. Among other things, the law requires banks to set aside more capital to protect their balance sheets in tough economic times.
In the Oct. 3 Presidential debate, Romney said the tougher regulations cause “unintended consequences” for smaller, local bank that may be unable to keep the required capital on hand. “This is the biggest kiss that's been given to New York banks I've ever seen,” Romney said. “This is an enormous boon for them. There've been 122 community and small banks have closed since Dodd- Frank.”
The law also protects consumers by requiring financial institutions to be more open with the American public. Dodd-Frank also created the Consumer Financial Protection Bureau, which is meant to help educate Americans about financial products and services, including mortgages and credit cards. The reforms are intended to ensure that banks and other financial companies are following the laws. Romney has not said that he does not support the consumer bureau, but he has expressed concern that it creates difficulty for banks and could decrease lending to small businesses.
--Samantha Liametz