GO
Loading...

Enter multiple symbols separated by commas

Dodd-Frank 'Written in Anger,' Needs Fixing: Chamber CEO

Wall Street regulations crafted after the financial crisis were written quickly during turbulent times and need to be changed, Thomas Donohue, president and CEO of the U.S. Chamber of Commerce, told CNBC.

Ahead of the business advocacy group's annual Capital Markets Summit on Wednesday, Donohue said in a "Squawk Box" interview that money goes where it's welcome, safe, and productive and that's why some aspects of the Dodd-Frank Wall Street reform law need to be changed, while others should be eliminated altogether like the long-delayed Volcker Rule.

"Dodd-Frank was written in a hurry and it was written in anger. And here we are three years later," he said. "We're already putting extraordinary stress on every kind of financial institution in this country."

Two-thirds of the rules have yet to be written, according to Donohue, adding that this is a "good thing" because it gives regulators a chance to focus on positive ways to keep the U.S. financial system on top.

The Budget Process

Entitlement programs, such as Social Security and Medicare, need to be reformed or they will financially destroy the country,Donohue said as details were emerging on President Barack Obama's proposed budget.

The White House plan being unveiled Wednesday calls for a mix of approximately $600 billion in new taxes and spending cuts to achieve another $1.8 trillion in deficit reduction over 10 years. (Read More: Obama Sends 2014 Budget to Congress)

But Donohue said that's not enough. "We will increase our debt by [about] a $1.5 trillion every year ... unless we make some serious changes."

He was encouraged that the president and the Senate are putting forth budgets as competing measures to the House version. "We are going to have an opportunity to go back to normal order [and] debate this."

Jobs and Economic Growth

Significant job gains won't be achieved until the economy grows at around 3 percent, Donohue said.

"No growth, no jobs," he stressed. "No jobs, work goes somewhere else."

Last year, U.S. gross domestic product increased 2.2 percent.

The government's read on the first quarter of 2013 is scheduled to be released later this month.

By CNBC's Matthew J. Belvedere; Follow him on Twitter @Matt_SquawkCNBC

Market Insider

  • Trader on the floor of the New York Stock Exchange.

    Markets face a barrage of potential catalysts as the month of June begins, a traditional period of stock market weakness.

  • Traders work on the floor of the New York Stock Exchange.

    As a selling wave hit stocks Friday, traders chatted up a market factoid that appeared to lay the blame for the decline on month end maneuvers.

  • Traders work on the floor of the New York Stock Exchange.

    If you're looking for a reason to get bearish on the market, at least short term, history may be on your side.