General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWho's right on TPA and the future of financial regulation, Warren or Obama?
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How Dodd-Frank is at risk
Dodd-Frank financial reform and regulation issues are not central, as far as we know, to the Trans-Pacific Partnership, but they are absolutely on the table in the upcoming free trade agreement with the European Union, known as the Transatlantic Trade and Investment Partnership (TTIP).
TTIP is still being negotiated, but the Europeans have said publicly and repeatedly including recently that they would like to include a great deal about financial regulation in this agreement. And important parts of the US and European financial sector lobby are egging them on.
The current Treasury Department is adamantly opposed to including such issues, precisely because it would impede the working of financial regulation in general and implementation of Dodd-Frank in particular. (For more details, see this Policy Brief that I wrote with Jeffrey J. Schott, my colleague at the Peterson Institute for International Economics.)
But the term of the TPA, as currently proposed, is six years. (To be precise, it is for three years, renewable for another three, but the terms of renewal are almost automatic. And as long as the Republicans control the House of Representatives in 2017-18, it will be renewed.)
If the next president agreed to amend Dodd-Frank as part of TTIP, he or she would include those changes in the bill that implements it, with no Congressional amendments allowed to strip out the financial changes.
Read more: http://www.sciencecodex.com/whos_right_on_trade_promotion_authority_senator_warren_or_president_obama-157308#ixzz3aTNg3J5U
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Just FYI: The author of this piece isn't just some reporter:
Simon Johnson is Professor of Global Economics and Management at MIT Sloan School of Management. Johnson is a registered Democrat in Washington DC but does not donate money to any political party or candidate. Click here for more information: http://mitsloan.mit.edu/faculty/detail.php?in_spseqno=41226. This article was originally published on The Conversation. Read the original article.