SEC Commissioner Daniel Gallagher has consistently criticized the “Wall Street Reform and Consumer Protection Act” – otherwise affectionately know as Dodd-Frank. It should come to no surprise to anyone who has operated inside the beltway that Dodd-Frank has accomplished little except to bog down the regulatory process. In fact 5 years into the 2300 pages of fine print, the SEC is still only half-way completed with their rule making task. Gallagher, visiting the studios of CNBC, stated;
“It’s a massive endeavor, it is more than we can handle… they [meaning Congress] expected us to get most of it done in 2 years. It is an impossible task and no one would admit it”
While Congress may be adept at generating mountains of legislation, it is the SEC that must administer new rules – when it comes to capital markets.
Gallagher is of the belief that “Dodd Frank is based on false narratives”. That it is terrible legislation that did little to address some of the system issues while potentially creating a future of problems.
Gallagher will be leaving his position at the SEC in the coming months. His unvarnished perspective will be missed.