Treasury Under Secretary Remarks Dodd-Frank Act Will Lead to Sounder Financial System

By: J. Preston Carter, J.D., LL.M., Editor, the CCH Federal Banking Law Reporter, CCH Financial Privacy Law Guide, CCH State Banking Law Reporter;and Bank Digest.

In remarks delivered at the Peterson Institute for International Economics on July 26, 2010, Treasury Under Secretary for International Affairs Lael Brainard noted that, in response to the most globally synchronized recession the world has seen, “we have mounted the most globally coordinated response the world has attempted.” However, he cautioned that decisive financial repair and reform are key to future economic growth and that “The historic enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act lays the foundations for a sounder and more resilient financial system.” Brainard also stated that transparency is needed for financial markets to function effectively, and he welcomed last week's release by the Committee of European Banking Supervisors of bank-by-bank stress test results.