Today is the 7th anniversary of Dodd-Frank and the 6th anniversary of the Consumer Financial Protection Bureau.
And here's where we are: The big banks are still wearing blinders. And here's the proof.
Dodd-Frank financial reform aimed to prevent a repeat of the supposed business practices from large financial firms that brought the global economy to a crashing halt. And the advent of the CFPB is meant to enforce that order.
However, more than half a decade into its enactment, calls to reform the act are stronger than ever, albeit from predictable sources.
Perhaps the largest is from the CEO of JP Morgan Chase, Jamie Dimon, on his latest earnings call, in which he used vulgarity to express his exasperation.
Here’s a snippet from Forbes coverage, written by Jen Wieczner:
"I don’t buy the argument that we’re relegated to this forever," Dimon said in response to an analyst's question on the call. "We’re not—if, you know, this Administration can make breakthroughs in taxes and infrastructure and regulatory reform."
House Financial Services Committee Chairman Jeb Hensarling (R-Texas), the sponsor of the primary reform package, known as the Financial CHOICE Act, released the following statement:
"This week marks Dodd-Frank’s seventh anniversary, but the only thing to celebrate is that Congress and the Trump Administration are working to end this Obama-era monstrosity and the financial harm it has inflicted on hardworking taxpayers and small businesses."
"We need to get government out of the bailout business and level the playing field so small banks and credit unions have a better chance to compete and help our economy create jobs," a statement from Hensarling said.
Repeat: The reform will get the government "out of the bailout business."
So here’s the rub: Dimon is calling for reform.
The reform Hensarling is putting forward would end big bank bailouts.
CONCLUSION: This would remove the JPM safety net which all big banks currently enjoy, to which the smug CEO casually and unprofessionally refers to as "sh*t."
So, the lesson is, be careful what you wish for Mr. Dimon.
After all, do you really wish for financial reform that removes your own bank from the possibility of another $12 billion rescue package?
Let's see where your attitude stands if you're ever back again at the feet of the Federal Reserve, with hat in hand.