Press Center

 Statement From Secretary Lew on the Six-Year Anniversary of the Enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act


7/21/2016
 
WASHINGTON – “When President Obama signed Wall Street Reform into law six years ago, our economy was still recovering from the worst recession since the Great Depression.  Thanks to the President’s decisive leadership and crucial steps taken by Congress, we not only avoided a full-scale depression but passed comprehensive financial reforms to put our system on a firmer footing and help prevent future crises.
 
“Six years later, we can say without question that Wall Street Reform has made our financial system safer and sounder.  Banks have added more than $700 billion in additional capital to help strengthen their balance sheets.  The vast derivatives market has been pulled out of the shadows, with requirements that standardized derivatives be centrally cleared and traded transparently.  The Consumer Financial Protection Bureau, which marks its five-year anniversary this year, has put in place new safeguards for consumers, and provided over $11 billion in relief for more than 27 million hardworking Americans.  And the Financial Stability Oversight Council has closed regulatory gaps exposed by the crisis, with regulators now working collaboratively and transparently to better identify and respond to potential threats to the financial system.
 
“Over the past year, the strength of our financial system has been tested repeatedly.  Through several episodes of market volatility—most recently in the wake of the United Kingdom’s vote to exit the European Union—the U.S. financial system has demonstrated resilience, providing fresh evidence that Wall Street Reform is working and that with deeper capital, greater transparency, and detailed resolution plans, it can withstand far greater shocks than before the crisis.  But we cannot become complacent.  If anything, recent events around the world underscore the need to remain vigilant.  This means continuing to carry out Wall Street Reform and defend against efforts to roll it back. 
 
“As we mark this sixth anniversary, we must remember that the enactment of Wall Street Reform was not simply an accomplishment to celebrate, but a commitment to keep.  We must continue to carry this work forward, and do everything we can to ensure that our financial system remains the safest and strongest in the world.”
 
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