Dodd-Frank and Glass-Steagall: ‘Consumer Protection for Billionaires’
Much like the frenzied environment on Capitol Hill during the 2008 financial crisis and the passage of the 2010 Dodd–Frank Act, most of the Glass–Steagall-related hearings were more focused on casting blame than shedding light on – and actually fixing – the problems that caused the crash. In both instances we ended up with legislation that tried to design financial markets by dictating precisely who can take which financial risks. This approach does not make markets safer. It harms consumers via higher prices, fewer choices, and less opportunity because it protects firms from competing for consumers. It’s consumer protection for billionaires. It was true in the 1930s and it’s true now.