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Congress Delaying Dodd-Frank Legislation

Congress has been busy over the last month, busy delaying important legislation that may prevent the next financial crisis. The financial system collapsed five years ago under the weight of risky debt, and the Dodd-Frank regulations presented a sweeping reform that would put in place measure to prevent a future financial collapse. Currently Congress has implemented less than half of the regulation of Dodd-Frank. Some of the provisions that have seen delays are rules to regulate investment advice, and another to restrict banks’ trading in certain derivatives.

According to some critics, Congress has failed Americans again. Federal regulators, multiple corners of the financial industry have slowed efforts to create more than 400 rules. Some critics has stated that this is what has impeded the growth of the economy and business expansion. What many could be worse is the rules yet to be written by not even stop the next bank collapse.

Even through all of this there has been a lot of good come from the sweeping legislation. Many of the bad mortgages have been cleaned out, trading in financial derivatives has been brought into the open and trader are required to put up a cash cushion incase their investments go bad, and the financial system has become somewhat safer in the global market aspect.

People, banks, and other financial intuitions that are still operating under the old regulations are being more cautious about the type of investments they make in businesses, etc., but the fact remains that there is still much to do. Legislation need to continue, and reform needs to be made. Congress will get there, but no one know how long that will take.

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