WASHINGTON, D.C. — A new Better Markets report entitled “15 Years of Financial Reform: Dodd-Frank, Lessons (Un)Learned and the Coming Crash” details the 2008 financial crash’s horrific impact on Main Street Americans, the decades of deregulation that drove the crisis, and the lack of lessons learned, as evidenced by a renewed push for a dangerous level of financial deregulation.
Statement from Dennis M. Kelleher, Cofounder, President, and CEO of Better Markets:
“The key unlearned lesson from the 2008 financial crash is that it wasn’t some freak accident—it was a man-made, avoidable disaster driven by Wall Street greed and deregulation that disregarded the dangers to working families, small businesses, and the broader economy. The fallout was brutal: 27 million Americans lost their jobs, 16 million homes faced foreclosure, nearly half of U.S. homeowners were underwater, 90% of Americans were poorer in 2016 than they were in 2007, and the American Dream evaporated from coast to coast.
“That’s why the passage of the Dodd-Frank financial reform law in 2010 was so important. It mandated that Wall Street and the financial industry be re-regulated so that never happens to America’s Main Street families again. But now, Wall Street is back at it again—singing the same Siren song of deregulation, dressed up as concern for growth and opportunity. But history proves that tune leads straight to another crash, and next time, it’ll likely be worse because the country won’t have the fiscal or monetary tools to clean up the mess.
“Wall Street doesn’t need weaker rules—Main Street needs stronger ones. For decades, strong rules kept our financial system stable and helped fuel broad-based economic growth. We’ve done it before, and we can do it again. Instead of rolling back financial protections, it’s time to learn the lessons of history and strengthen the rules—so we can stop worrying about the next crisis and start focusing on building an economy that works for hardworking Main Street Americans.”
The Report can be found here.
Clips from Dennis M. Kelleher’s recent congressional testimony related to these issues before the U.S. House Committee on Financial Services can be found here. His opening statement may be found here.
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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.
