Four Years After Dodd-Frank: A Lot to Celebrate, A Lot More Work to Be Done
Six years ago in September, following a decade of under-regulation, reckless Wall Street practices crashed our economy. Two years later, in July 2010, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. Since then, the process of turning the financial reform legislation into implementable law has frequently been stalled. Armies of well-financed lobbyists representing banks and industry interests have labored to water down and delay the rules, but still, consumers are reaping huge benefits from the legislation. These accomplishments are exemplary of the way our regulatory system should work to hold corporations accountable and protect the public from harm, but they are only the first steps on a longer journey to financial security and regulatory transparency.
Without a doubt, the Consumer Financial Protection Bureau (CFPB), first envisioned by then-Professor Elizabeth Warren, has had an incredible impact on the ability of consumers to make informed decisions about financial goods and services. Since beginning to accept consumer complaints in July 2011, the CFPB has now reviewed more than 395,000 complaints on products ranging from credit cards to mortgages to student loans. This public record of complaints, along with educational tools and programs, has greatly reduced the types of predatory lending and misleading advertising that sent many consumers into debt leading up to the 2008 financial crisis.
New Legislation Would Allow Criminal Penalties Against Corporate Officers
Who Hide Information on Dangerous Products
A new piece of legislation introduced this week by Sen. Richard Blumenthal (D-CT) and co-sponsored by Sens. Bob Casey (D-Pa.) and Tom Harkin (D-Iowa) would ensure that corporate executives who knowingly market life-threatening products or continue unsafe business practices are held criminally responsible when people die or are injured.
Under the Hide No Harm Act, key corporate managers will be required by law to report serious dangers to relevant government agencies, employees and affected members of the public. No longer will corporate executives be able to walk away from their crimes with a light fine. When individuals knowingly allow harmful products and practices to endanger the lives of workers and consumers, the penalties will be appropriate and proportionate: heavy fines and jail time.