NYU's Schoenholtz: Dodd-Frank Act Not the Perfect Remedy

The video discusses the Dodd-Frank Act, highlighting its inefficiencies and the proposed Choice Act as a replacement. It emphasizes the importance of maintaining safety in financial systems despite the high costs of regulation. The discussion includes the need for reforms that reduce costs without compromising safety, especially for the most complex and risky institutions. The video also touches on the role of US banks in international regulations and their competitiveness due to increased capital.

What is one of the main criticisms of the Dodd-Frank Act mentioned in the video?

• It does not cover international banks.

• It was never fully implemented.

• It is considered inefficient.

• It is too lenient on small banks.

What is a potential downside of the Choice Act as a replacement for Dodd-Frank?

• It could increase financial safety.

• It might make the system less safe.

• It would reduce the number of regulations.

• It would only affect small banks.

How can the costs of Dodd-Frank be reduced without compromising safety?

• By removing all regulations.

• By focusing on the most risky institutions.

• By increasing the number of rules.

• By ignoring international standards.

What is the role of Basel rules in international banking?

• They are optional guidelines.

• They are only for U.S. banks.

• They apply to all banks worldwide.

• They are for internationally active banks.

How has increased capital affected U.S. banks in the international arena?

• It has made them less competitive.

• It has weakened their financial stability.

• It has had no significant impact.

• It has made them more robust and competitive.