SPECIAL
                                           REPORT
                                            JULY 21, 2020
      Ten Years of Dodd-Frank  
      and Financial Reform
      OBAMA’S SUCCESSES, TRUMP’S ROLLBACKS 
      and FUTURE CHALLENGES
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          Table of Contents
          INTRODUCTION .......................................................................................... 1
            Dodd-Frank is Important and Relevant to Today’s Social Upheaval ...........................1
            The Dangerous Deregulation of the Financial Industry  ............................................2
            Financialization .................................................................................................... 5
          The 2008 Crash and its Costs 6
            Re-regulating the Financial Industry: The Dodd-Frank Act  
            and the Obama Administration .............................................................................. 9
            The Trump Administration Adopts Wall Street’s Deregulation Agenda .....................10
            No Evil Required: Just the Siren Song of Market and Competitive Pressures...........13
          THE DODD-FRANK ACT ..........................................................................15
            The Dodd-Frank Act was a Bipartisan Bill that Resulted  
            from an Unprecedented Open and Public Process  ...............................................15
            Dodd-Frank Act Goals .........................................................................................18
            Key Components of the Dodd-Frank Act ...............................................................19
              Prudential Regulation  ..................................................................................19
              Establishment of CFPB to Protect Financial Consumers from Predators ...........21
              Creating FSOC to Address Systemic Risk and Shadow Banking System............22
              Volcker Rule to Address Proprietary Trading by Banks .....................................22
              Reform Securities Markets to Increase Investor Protection ..............................24
              Derivatives Regulation  ..................................................................................26
            The Dodd-Frank Act Delegated to Regulatory Agencies .........................................28
          THE DODD-FRANK ACT UNDER THE OBAMA ADMINISTRATION .....29
            Prudential Bank Regulation .................................................................................29
              Capital, Liquidity and Leverage Standards, Including Enhanced  
              Prudential Standards for Megabanks ...........................................................29
              Stress Tests ..................................................................................................31
              Resolution Plans, aka “Living Wills” ..............................................................31
              Orderly Liquidation Authority .........................................................................32
            Volcker Rule .......................................................................................................32
            Consumer Protection ..........................................................................................33
            Investor Protection ..............................................................................................34
              Investment Advice ........................................................................................34
              Credit Risk Retention ....................................................................................35
              Whistleblower Programs ................................................................................35
            Derivatives .........................................................................................................36
              Derivatives Market Structure Improvements and Trading  
              and Clearing Requirements .........................................................................36
              Margin for Uncleared Swaps ..........................................................................37
              Swap Dealer Business Conduct Standards ......................................................38
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             Cross-Border Activity .....................................................................................39
           Addressing Systemic Risk ...................................................................................40
             Entity Designations—MetLife, AIG, Prudential, GE Capital ..............................40
             Activity Designations—Recommended More Robust Money Market Fund  
              Regulations to SEC .....................................................................................41
             Office of Financial Research ..........................................................................41
           The Obama Administration’s Unfinished Agenda ..................................................42
             Speculative Position Limits ...........................................................................42
             Executive Compensation ...............................................................................42
             Credit Rating Agencies ..................................................................................42
         THE DODD-FRANK ACT UNDER THE TRUMP ADMINISTRATION ....44
           The Treasury Department’s Review of Regulations Was a Roadmap  
           for Widespread Deregulation ................................................................................44
           Prudential Standards ..........................................................................................48
             Capital and Liquidity Requirements ...............................................................48
             Undermining the Credibility of Stress Testing .................................................49
             Reduction of Living Will Requirements ..........................................................49
           Volcker Rule .......................................................................................................50
           Changing the CFPB from Consumer Protection  
           to Predator Protection .........................................................................................51
           Undermining Investor Protection .........................................................................53
             Finalizing a Flawed Regulation Best Interest ..................................................53
             Threatening Whistleblower Protections ...........................................................54
           Undermining Derivatives Reforms ........................................................................54
             Proposal to Overhaul SEF Regime ..................................................................54
             Reducing Margin Requirements.....................................................................54
             Proposed Weak Cross-Border Rules ................................................................55
           Gutting the Financial Stability Oversight Counsel ..................................................56
             Abandoning Entity-Designation Authority .......................................................56
             Abandoning Activity-Designation  ..................................................................58
             De Facto Killing the Office of Financial Research  ..........................................58
         WHAT’S NEXT FOR FINANCIAL REFORM,  
         INCLUDING BEYOND THE DODD-FRANK ACT? ................................59
           Reversing Dangerous Trump-Era Deregulation  ......................................................59
           Finishing the Unfinished Obama-Era Business .....................................................60
           Financial Reform Beyond the Dodd-Frank Act ......................................................60
         CONCLUSION ..............................................................................................67
         APPENDIX: Republican-Sponsored Amendments to S. 3217  
         Adopted by the Senate ...............................................................................................68
         Citations ....................................................................................................................71
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