By Nomin Angarag
President Barack Obama signed the Dodd–Frank Wall Street Reform and Consumer Protection Act into federal law seven years ago today. Dodd-Frank was a widespread reform created in direct response to the 2008 market crash. It promotes financial stability, improves accountability and transparency, and prevents future crises from happening again. Among other things, Jubilee USA worked on the initial passage of the Cardin-Lugar amendment, or Section 1504 of Dodd-Frank, which requires oil and mining companies to disclose financial activity and payments to governments in the countries where they operate.
Jubilee USA believes Section 1504 is not only an important anti-corruption tool, but also an important anti-poverty tool. Developing countries lose more than $1 trillion a year due to corruption and tax evasion. Countries with substantial natural resources are particularly vulnerable to corrupt practices given the high demand for those resources. Bribes and other illicit transactions, including outright theft, by leaders of resource-rich countries perpetuate poverty, fuel conflict and threaten our national security.
Since Dodd-Frank was signed into federal law, it has received a number of attacks, including a congressional vote that voided the SEC rule implementing Section 1504 and more recently through the Financial Choice Act, which passed the House. Congress voided the SEC rule using the Congressional Review Act, which lets Congress strike down regulatory measures using expedited procedures. Just this past June, the House passed the Financial Choice Act. This legislation weakens the regulatory power of the Consumer Financial Protection Bureau (CFPB) over big banks and payday lending and if passed in the Senate, would undo much of Dodd-Frank, including repeal of Section 1504.
While we celebrate the hard-won fight for transparency seven years ago today, we also realize that fight continues to defend these victories and ensure they stay in place.
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