What’s Next for Dodd-Frank? A Look at Likely Reforms

Trump dismantle dodd frank

Taking place two days after the election, Equilar’s Compensation Committee Forum was perfectly timed, as attendees heard from industry leaders (including a former SEC Commissioner) about the regulatory implications to be expected with a Trump presidency.

With another week behind us, far more speculation has begun to circulate about the fate of the Dodd-Frank Act. Experts at the Compensation Committee Forum more or less agreed that a full repeal was unlikely—instead, we could expect amendments to “several core provisions” of Dodd-Frank. That brings us to the next logical question: Which Dodd-Frank provisions will most likely be reconsidered? And, how will reforms impact board governance?

This week, we’ve compiled three helpful articles, which outline the policy areas that are most likely to change, along with arguments for both sides.

    1. Five Dodd-Frank Provisions That Are Likely to Change

    Via Reuters | by Sarah N. Lynch

    With the appointment of Former SEC Commissioner Paul Atkins to Trump’s transition team, speculation suggests that Atkins may be the most likely candidate for the position of SEC Chairman.

    Reuters uses Atkins’ philosophies on corporate governance as a lens to examine the five policy areas that are most likely to be affected. Loosend auditing rules, more hurdles for whistleblowers, and reduced corporate penalties are among the reforms expected to have the greatest impact on boards. Read here.

    2. Reasons Why Trump Should or Shouldn’t Dismantle Dodd-Frank

    Via Forbes | by Robert Harrow

    The intentions of Dodd-Frank are genuine, yet how effective are the provisions in practice? Forbes runs through two major arguments, one for and one against massive Dodd-Frank revisions.

    The state of subprime lending and the Consumer Financial Protection Bureau (CFPB) are discussed. Board must be aware of how the CFPB’s recent crack-down of Wells Fargo has influenced shareholder opinion surrounding Dodd-Frank. Read here.

    3. SEC Chair Mary Jo White Steps Down, Clearing Path for Regulatory Relief

    Via The Washington Post | by Renae Merie

    At the announcement of Mary Jo White’s step-down, the Washington Post provides a retrospective look at Dodd-Frank’s implementation over the last several years and the landmark actions taken by the retiring SEC chair.

    Towards the end of her term, Chairman White faced staunch criticisms from progressive members of the Democratic Party, who claim she didn’t go far enough. This article compares her stance to that of Paul Atkins and provides a practical background for understanding how financial regulation arrived at this point. Read here.

    For more connections between the current state of regulation and board governance, don’t miss last week’s recap of the Compensation Committee Forum. Stay tuned to our blog for further coverage of SEC regulation as it relates to corporate boards.