When President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law in 2010, the United States Department of the Treasury reports that it was “the most comprehensive, far-reaching set of reforms to our financial system since the Great Depression”. Today, they share that they economy is back on track, growth has returned, and the financial system is safer because of these historic reforms.
In addition to these statements, Treasury also reports the unemployment rate has been cut by half and jobs continue to grow with an average of more than 150,000 new private sector jobs per month in 2016 so far. Additionally, household net worth has grown by about $30 trillion to levels well above those from pre-crisis, and business lending has increased by over 60 percent.
Treasury also states that Wall Street Reform has also brought greater transparency and stability to the financial system therefore developing a foundation for maintainable, all-encompassing economic progress.
During these past six years, Treasury says that banks have added over $700 billion in additional capital to lend to consumers and businesses and that will make these institutions more resilient in the event of unexpected losses. Standardized derivatives are also now required to be centrally cleared and traded on exchanges or transparent trading platforms in order to increase transparency and reduce risks to the financial system.
In addition to these developments, Treasury also notes The Financial Stability Oversight Council who has brought in their opinion the entire financial regulatory community together to identify and respond to potential emerging threats to financial stability. Finally, they note The Consumer Financial Protection Bureau who has secured more than $11 billion for more than 27 million hardworking consumers.
The report says that in the words of Secretary Lew “this progress must not lead to complacency”. Treasury doesn’t believe their work ended with the passage of Wall Street Reform, but instead was just the beginning. They share that creating a safer, more stable financial system is an ongoing project and it requires constant vigilance.
They also say in the coming months, they will remain focused on seeing the implementation of Dodd-Frank through, opposing efforts to weaken the reforms we’ve put in place, and creating a system that protects taxpayers, consumers, and Main Street communities all across the country.