SEC Official Calls Congressional Provisions Distracting
|By John Schmid, Milwaukee Journal Sentinel|
In the aftermath of the
And yet for all the new mandates from
Asked if the nation is less vulnerable to another financial crisis today than it was prior to the 2008 meltdown, Gallagher gave conspicuously little reassurance.
"I'm not sure."
Speaking in an interview Friday during a visit to
The "zero interest rate environment," currently fostered by an accommodative
"Especially retirees and retail investors -- the least sophisticated folks in our spectrum -- do we want them incentivised to be taking on more and more risk?" Gallagher said.
In the event of another bubble that bursts, he said, "those who are larger, savvy and well connected will do fine." But retirees, smaller investors and small businesses could be hurt if lending dries up again because of unintended consequences of new regulations.
When it comes to the economy, those outside the investment banking and finance industry may pay far less attention to the
The agency has had three different chairpersons in the last seven months, he said. And because it's the
"We've been in a weird transitional state," Gallagher said.
What's more, in the panicked wake of the
"Dodd-Frank is fundamentally flawed," the 41-year-old Republican said.
Meanwhile, issues that are relevant to the financial system -- such as nation's housing policies and the
Nor does it outlaw unsound methods that investment banks such as
The official compared the reaction by lawmakers to the market crash of 1929, which triggered the Depression. Then, lawmakers took four years to analyze what triggered the crisis and came up with the 1934 Securities Exchange Act, which created the
Dodd-Frank is more similar to the "Obamacare" overhaul of the nation's health insurance system -- massive legislation that gets through
As he enumerates his criticisms, Gallagher freely acknowledges he's a Republican.
"There are massive amounts of congressional mandates we're still working through," he said.
(c)2013 the Milwaukee Journal Sentinel
Visit the Milwaukee Journal Sentinel at www.jsonline.com
Distributed by MCT Information Services
|Source:||McClatchy-Tribune Information Services|