NEW YORK (TheStreet) -- House Republicans' condemnation on Monday of the Dodd-Frank Act, on the occasion of its fourth anniversary, may not effect investors' choices about where to put their money, said industry observers.
Rep. Jeb Hensarling, a Republican from Texas), spent part of the day slamming Dodd-Frank for failing to end government coddling of financial institutions known euphemistically as 'too-big-to-fail banks.' Hensarling called on his party'es leadership to to end such pussyfooting "once and for all."
While Hensarling no doubt won applause from constituents back in his district southeast of Dallas, the congressman's complaints are more likely a political move to attract attention to ongoing grievances by opponents of the sweeping reforms.
Ernie Patrikis, former AIG (AIG) general counsel and former vice president and general counsel for the New York Fed, pointed out one of those objections in an interview, calling Dodd-Frank reforms four years later a case of the "good, the bad and the ugly."
"I think the [Federal Reserve] had the inherent authority to do a lot of what is in Dodd-Frank -- the Fed using its powers to do all of the regulatory issues related to capital, liquidity, leverage, etc.," Patrikis, partner at White & Case Banking, said.
Republicans often roll out critiques to reform the Dodd-Frank act, making Monday's report a familiar refrain. In November, the GOP said it would lobby for relaxed regulations of private equity fund investment advisers, and in February the House passed legislation that would have replaced the single regulator with a five-member board. But that's as far as efforts to gut Dodd-Frank have reached.