Panel Discusses Successes And Shortcomings Of Financial Reform Bill
The Rock Center for Corporate Governance is featured in the following Stanford Daily article, covering a panel discussing the Dodd-Frank Act:
A panel of experts convened yesterday afternoon to discuss the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act), enacted in July 2010. The Rock Center for Corporate Governance, a joint initiative of the Stanford Law School (SLS) and the Stanford Graduate School of Business (GSB), convened the panel.
Panelists included Neel Kashkari, managing director at bond house PIMCO, former assistant secretary of the Treasury and the first TARP chief; business professor Darrell Duffie and law professor Joseph Grundfest.
When asked to grade the Dodd-Frank on a scale of one to 10, with 10 most effective, Duffie and Grundfest granted the bill an “incomplete” while Kashkari rated the bill a three. All three agreed that the legislation fails to address certain important issues.
Grundfest argued that greater contributors to the crisis were information failure and the collective failure on the regulatory side in terms of risk analysis and management.
“The government of the U.S.A. in the banking sector and in the securities sector had all the necessary authority and data to prevent this crisis from happening,” Grundfest said. “But OTS [Office of Thrift Supervision]…did not understand the implications of the data it had access to.”