FOX Business’ Liz MacDonald is reporting that Deutsche Bank (DB) is ripping into financial reform through a recent report.
Deutsche’s 84-page analysis, entitled “The Implications of Landmark U.S. Reg Reform,” criticizes the 2,319-page Dodd-Frank bill for a wide range of reasons.
FBN: “The bill “fails to eliminate” the risk from too big to fail and leaves unscathed Fannie Mae and Freddie Mac, the two mortgage finance companies at the heart of the crisis, as well as credit rating agencies, hedge funds and insurers, among other things.
Deutsche also says the bill gives wide discretion to a “broad range of regulators” to write rules overseeing bank activities.
Deutsche adds that the echo chamber message in the media, “the often repeated notion that ‘banks dodged a bullet’ is simply not true,” that the bill is “especially tough on the Big Banks,” and that “most provisions result in significant downward pressure on profitability, upward pressure on capital,” but will create “increased stability.
Deutsche also warns the push to place a notional $605 trillion in derivatives in central clearing houses will cause those same clearing houses to be too big to fail, citing other countries’ past failures at launching clearing houses for securities.”