In a statement celebrating the six-year anniversary of the Dodd-Frank Wall Street Reform and Consumer Protection Act, U.S. Treasury Secretary Jacob Lew today praised the “resilience” of the reformed financial system in the face of episodes of market volatility triggered by Brexit and other events this year.
“Six years later, we can say without question that Wall Street reform has made our financial system safer and sounder,” he said, noting that banks have bolstered their balance sheets with more than $700 billion in new capital as a result of the law.
“The vast derivatives market has been pulled out of the shadows, with requirements that standardized derivatives be centrally cleared and traded transparently,” according to Lew.
Created by Dodd-Frank, the Consumer Financial Protection Bureau has installed new consumer safeguards “and provided over $11 billion in relief for more than 27 million hardworking Americans,” the Secretary stated. The CFPB marks its five-year anniversary this year.
Lew also noted that the Financial Stability Oversight Council established by the act “has closed regulatory gaps exposed by the financial crisis, with regulators now working collaboratively and transparently to better identify and respond to potential threats to the financial system.”