Wall Street reform gets Treasury defense

nyse_building_wall_street.jc.top.jpgDeputy Treasury Secretary Neal Wolin defended the Wall Street reform law, saying it beats the alternative, a collapsed financial system. By Jennifer Liberto, senior writer


WASHINGTON (CNNMoney) -- An Obama administration official gave a strong defense of the Wall Street reform law Tuesday, saying the measure costs a lot less than the alternative: a collapsed financial system.

During a speech at the Pew Charitable Trusts on Tuesday, Deputy Treasury Secretary Neal Wolin batted down accusations, from Republicans and the banking industry, that regulators were working too quickly or that reforms would be too costly.

"We say that the costliest system of all is one that's prone to collapse," said Wolin said. "What happened in 2008 and 2009 was vastly more costly than implementing the various pieces of Dodd-Frank."

The reform law -- known as the Dodd-Frank Act -- has become a punching bag for House Republicans. They have introduced a litany of bills to "tweak" and undo parts of it.

The new bills aim to weaken the powers of the consumer financial protection bureau created by the measure, as well as rules that crack down on complex financial contracts called derivatives.

Wolin also countered a bigRepublican accusation that the consumer bureau is unaccountable. He said the consumer bureau answers to "Congress and the American people, " and that it must submit reports to and testify before Congress.

He also pointed out that a panel of regulators can overturn the consumer agency's rules, although that can only happen with a two-thirds vote to veto a rule.

Wolin also warned against efforts to overturn or water down rules that allow regulators to require big derivative players to put up margin requirements and capital to back up big bets they're making.

"Requiring the largest participants and dealers in derivatives markets to hold capital and margin is critical to improving the resilience of the financial system," Wolin said. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 18,037.97 -42.17 -0.23%
Nasdaq 5,060.25 -31.84 -0.63%
S&P 500 2,108.92 -8.77 -0.41%
Treasuries 1.92 0.01 0.37%
Data as of 6:35am ET
Company Price Change % Change
Applied Materials In... 19.97 -1.83 -8.39%
Apple Inc 132.65 2.37 1.82%
Bank of America Corp... 15.56 -0.08 -0.51%
Microsoft Corp 48.03 0.16 0.33%
Pfizer Inc 34.59 -0.68 -1.93%
Data as of Apr 27
Sponsors

Sections

No customers or employees were in the store when looters broke into it, the company said. It was closed earlier in the afternoon out of caution before the situation turned violent. More

A major earthquake was the last thing Nepal needed. Even before one of the country's major fault lines rumbled to life, the country was beset by challenges. More

Tech devices -- from drones to Raspberry Pis -- got a lot of love onstage at the 2015 Matrix Awards honoring powerful women. Here's why. More

An Oregon bakery that refused to bake a cake for a lesbian couple's wedding had its crowdfunding page shut down after just one day. More

Imagine having a three-day weekend every week and being paid the same full-time salary. It can be done if your employer offers you the option of a compressed workweek. More