The US is at a critical juncture for financial regulation
By Matthew Richardson, Kermit Schoenholtz, Bruce Tuckman, Lawrence White
In short, at this critical juncture of financial regulation in the United States, a combination of the best features of Dodd-Frank and the CHOICE Act will foster both a more productive and a safer financial system.
The most burdensome parts of Dodd-Frank should be eliminated, but the government must have regulatory tools to protect the financial system. In particular, the following key issues need to be resolved correctly.
Create an “Off-Ramp” for smaller banks but not for the largest banks. The CHOICE Act’s off-ramp exempts banks that are financed with a specified minimum level of equity from the more complex rules of Dodd-Frank.
Read the full article as published by The Hill.
Matthew Richardson, Kermit Schoenholtz, Bruce Tuckman and Lawrence White are professors at the NYU Stern School of Business and are the editors of the recently published book, "Regulating Wall Street: CHOICE Act vs. Dodd-Frank."