The Democratic and Republican parties disagree on most major issues. When it comes to Wall Street, however, it's a mixed bag. Take the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
Democrats believe the bill has reined in the type of out-of-control behavior that led to the near collapse of the banking industry in 2008 and prevented a similar crisis. Republicans have criticized the legislation calling it "the Democrats legislative Godzilla." They feel the financial regulations have made it too difficult for small lenders and community banks and has indirectly slowed the growth of small businesses.
Regulation of the financial services industry has been a major issue not only in the current presidential election but in house and senate races. Democrats believe that the electorate largely sides with them that banks have overstepped and that they can use their position to win votes and take back the Senate. Republicans currently hold a majority 54 votes. Because of gerrymandering rules, Democrats will have a tougher time retaking the House.
Dodd-Frank was intended to increase transparency and accountability in the financial services industry and to protect consumers. Among other things, the bill created a new consumer protection agency and standards for a number of common financial services products.
The bill has been a point of pride for the Obama Administration, which supported the bill sponsored by then Connecticut Senator Christopher Dodd and Barney Frank, a former congressman from Massachusetts. Both are Democrats. "We will also vigorously implement, enforce, and build on the landmark Dodd-Frank financial reform law, and we will stop dead in its tracks every Republican effort to weaken it," the Democratic Party Platform says.
But Republicans have said that no financial institution is too big to fail and that U.S. bankruptcy laws can resolve problems tied to financial overreach. Wall Street lobbyists have vigorously opposed the legislation.
