The U.S. isn’t prepared for the next financial crisis, according to former SEC Commissioner Daniel Gallagher, who said the Dodd-Frank financial law enacted after the Great Recession should be thrown out and lawmakers should start over. Gallagher left the SEC in early October after four years as a Commissioner, and was a vocal critic about the law. ‘Having lived with Dodd-Frank for many years now as an SEC Commissioner, it’s largely just a series of wish list items that were sort of pent up by certain special interest groups over the years. And when they saw the ability to not let a good crisis go to waste they unleashed Dodd-Frank,’ said Gallagher. The former Commissioner said Dodd-Frank has been beneficial to large banks and insurance companies, and has been a barrier to entry for smaller firms, creating a lack of competition. But according to Gallagher, the bigger issue with Dodd-Frank is that it didn’t address what actual caused the financial crisis that began in 2007. TheStreet’s Rhonda Schaffler has details from New York.
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