Rob Johnson: Dodd bill “doesn’t do the job”

This week, the Obama administration turns its attention (finally!) to financial reform. Is the current proposal the Biggest Overhaul of Wall Street since the Great Depression? Or just a Big Nothing?

Our very own Rob Johnson, Director of the Roosevelt Institute’s Global Finance Project and Senior Fellow, agrees with Gary Gensler, chairman of the U.S. Commodity Futures Trading Commission, that the Dodd bill “doesn’t do the job.” Johnson is critical of the decision to house the consumer protection agency within the Fed, calling the missions of regulating banks and protecting consumers “incompatible.” The combination of Too Big to Fail institutions and unregulated derivatives are still the “San Andreas Fault Line” of our economy, he warns. Johnson points out that the derivatives market is 300 trillion dollars - or roughly 20 x the size of the American economy. And it puts the entire system at risk.

Johnson also talks about testifying before Congress in October and being shut down by bank-friendly Melissa Bean, and subsequently given the run-around on the publication of his testimony (see story in Harper’s here).

Watch the video at Democracy Now.