Morning Scan: Stock Market Rout Shows Two Sides of Dodd-Frank; Vatican’s AML Cop
by Andy Peters

DODD-FRANK’S GOOD AND BAD SIDES:Monday’s stock market meltdown offered up a case study in how Dodd-Frank has helped banks and how it’s hurt banks. The market madness also cast serious doubt on the Fed’s plans to raise interest rates next month. On the positive side for Dodd-Frank, banks have been forced to build up their defenses because of the law and they should be much better equipped to weather the storm of the next prolonged downturn. That, at least, was UBS analyst Brennan Hawken’s argument in light of the stock market’s bloodbath, in which bank stocks didn’t fare well. As for the Fed’s plans to raise rates, Karen Shaw Petrou, managing partner at Federal Financial Analytics, told American Banker it’s a foregone conclusion the central bankwon’t raise rates next month. Other Fed watchers agreed. Ted Truman, a former Fed official who now works for the Peterson Institute for International Economics, told the FT, “if anything,it will cause them to delay.”