Don’t break up banks — let Dodd-Frank work, experts say

Dodd-Frank bill has helped to make the large bank safer???? Yeah, right.

WASHINGTON (MarketWatch) — Financial regulation experts said Tuesday breaking up large banks could be costly while offering no additional safety-benefits for the economy.

The meeting at the Bipartisan Policy Center during two discussions convened to discuss the policy paper which argued the Dodd-Frank financial reform law have largely helped banks operate safer, would cost the economy, that it would be hard to do and that it would do little to reduce risk.

“What I’d be concerned about is, we’d inhibit recovery,” said Martin Baily, Co-Chair of the Financial Regulatory Reform Initiative and co-author of the report, adding it could restrict lending.

Marcus Stanley, policy director for Americans for Financial Reform, criticized the report, saying it looked too positively at the effects of Dodd-Frank. “We are some distance from where regulators feel confident,” Stanley said, in regards to resolving a bank.

Read on.

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