Dodd Frank Is a Piling On of Financial Rules, Not an Update, Says MIT Professor Lo
MIT professor Andrew Lo says regulations need to be updated.
The financial system has gotten much more complex, but many financial regulations are from the 1930's and 40's, notes Andrew Lo, professor at the MIT Sloan School of Management. Lo helped come up with the idea for the U.S. Office of Financial Regulation, which was created by the 2010 Dodd Frank Act. Nonetheless, much of Dodd Frank is way too long and difficult for anyone to understand, Lo contends. 'That wasn't so much an update as it was a piling on of new regulations,' Lo says of Dodd Frank. Lo, who sits on several regulatory advisory committees, spoke to TheStreet from a conference in Naples, Fla. hosted by CME Group.
