Will Dodd-Frank Survive After U.S. Election?

Democrats Concerned Romney May Gut Key Components

As the U.S. Presidential election approaches, concern from both Democratic and Republican parties over the future of Dodd-Frank financial regulation reform has reached a shrill, feverish pitch, industry consultant Mayra Rodriguez Valladares said.

Democrats are not sure whether Mitt Romney, if voted into the White House, really would repeal all of Dodd-Frank, as he has occasionally threatened. "Or will he remove or weaken considerably key components, such as the Volcker Rule, over-the-counter derivatives reform, and, especially, the Consumer Protection Finance Bureau," Valladares wrote in a guest column on the John Lothian News Interest Rates blog.

Romney "may come to realize that expending energy on trying to break down Dodd-Frank may not be a wise political choice, lest he be seen siding with Wall Street, rather than helping the middle class survive," Valladares said. Still "a Republican-controlled Congress can stall funding for the SEC and CFTC… to delay even further the rule-writing process."

Valladares, a CME Group featured contributor, is managing principal with MRV Associates, a New York based capital markets and financial regulatory consulting firm.