The Dodd-Frank Act is not biblical, he said, and there are good amendments being proposed. For example, one change he supports is legislation to codify the exemption from margin requirements for non-financial derivatives end users.The Senator reminded that the financial crisis that caused stunning carnage to the financial system was caused by an outdated financial regulatory system. The Dodd-Frank Act created a financial regulatory infrastructure designed to prevent a future financial crisis. The Act, which was the result of an open and accessible process, created a framework for a 21st century financial regulatory system. While Senator Dodd wanted a single prudential regulator, he could not get 60 votes for that.
He said that the Financial Stability Oversight Council is doing a remarkable job in making regulators work together and spot initial financial stability problems that could trigger another crisis. He also strongly emphasized that Dodd-Frank unmistakably eliminated too big to fail.