How is Dodd-Frank rippling through regional economies?
By Flickr user Nancy Pelosi
Hard to believe it’s been 18 months since President Obama signed financial regulatory overhaul into the law that was prompted by the collapse and/or near collapse of what’s now known as America’s too-big-to-fail financial institutions.
Pundits, critics and observers differ on the need for such legislation and now, whether it’s made our economy safer from the ripple effects of speculation, complicated trading, conflicts of interest and other practices that many feel led to the debt bubble and the 2008 collapse of investment banker Lehman Brothers which rippled out through global financial systems.
The bill known as the Dodd-Frank Wall Street Reform and Consumer Protection Act – here’s a summary - is so complex and far-reaching that covering its effects could be a full-time job. Chances are you don’t have that luxury, but if you want to take a look at the milestones in the long roll-out of new rules and regulations, below are some resources and suggestions that will arm you with interview topics for the banks, investment firms, securities analysts, regulators and consumers in your region.
A note of caution; many of the provisions of the bill concern the behind-the-scenes investing and trading activity at financial institutions; some of the terminology and practices mentioned are so sophisticated that even MBAs and industry veterans might feel a bit befuddled. There’s also a major political or ideological element to much of the regulation; be sure to be clear on your sources’ loyalties and agendas when quoting praise or criticism of Dodd-Frank.
Here’s a hot-off-the-press progress report on Dodd-Frank by the DavisPolk law firm; the 17-page PDF notes that 75 percent of rulemaking deadlines have been missed by the agencies responsible for writing new regulations; note that the organization has implemented a Twitter feed that will augment its monthly progress report; this is a must-follow if you plan to cover Dodd-Frank at length.
If you have time for more in-depth reading, the U.S. Government Accountability Office has issued a 118-page PDF on the Dodd-Frank regulations, including cost-benefit analyses and conflicts of interest. This report concerns rules that were in effect by July 21 but its format can help you develop questions on any of the regulations you might be following.
Similarly, here’s a Securities and Exchange Commission timeline for implementing provisions of the act, highlighting the next six months. This is fairly fertile ground for local reporters since corporate governance, independent compensation committees and other nitty-gritty elements of Dodd-Frank proposals will effect executives, shareholders and workers at a wide range of publicly traded companies, apparently, not just the financial institutions or household names. It would be interesting to interview a sampling of medium-sized and lesser-known public companies in your area about how any changes have or will affect them.
The Federal Reserve board’s regulatory reform portal also is a font of information, from milestones to public communcations. Don’t forget your district federal reserve bank officials as a source, too.
And finally, look for ancillary sectors that might not immediately seem affected by Dodd-Frank. Here, for example, is a recent press release by the American Guild of Appraisers expressing alarm at Dodd-Frank related fee reductions that the appraiser are protesting. It’s not an occupation that would spring to mind as being affected by financial regulatory reform, but it’s a pithy example that many readers will be able to relate to.
