Sen Warren

The Dodd-Frank banking bill is once again in the news. This was the bill that was supposed to, among other things, make the banks less likely to bring down the economy in the event that they failed. In fact these big banks just got bigger. Dodd-Frank pushed tons of new paper work and requirements on the banks but did little to keep the system from once again causing havoc in the economy. The common belief of Dodd-Frank can be summed up as follows:  Was just a P.R. stunt which didn’t really change anything  Increases the risky derivatives holdings of the banks  Makes the “too big to fail” banks even bigger  “Will NOT stop the next financial crisis from coming“  Is all holes and no cheese … a placebo for a sick economy The recent budget passed by the house makes the bill even less effective at controlling how banks invest their funds and thus faced strong opposition by Senator Warren who has consistently tried to restrict how these banks can operate. This is a good cause for her unlike her desire to equalize income by taking from the rich and giving to the poor. Simple math proves the futility of this approach. She should stick with more control of banking.