The Dodd-Frank Fiasco

           

The Dodd-Frank Act was passed in the middle of 2010. One of its main features was the Volcker Rule, which pertained to the separation of bank’s so-called proprietary investing and commercial banking. The idea was to make the banks safer because perceived speculation could hurt bank safety.

           

To date, the rule has not really been fully implemented. All the brains that comprise government bureaucracy have yet come up with a suitable definition of which constitutes proprietary investment or trading by the banks. And no one will ever accomplish this task.

But there’s a general assumption that government knows best and will safely guide bank operations with more and more regulation layers. The bureaucrats talk; nothing concrete is accomplished; the big banks get bigger, and too big to be allowed to fail, according to the bureaucrats. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at twitter)