The author of the memorandum regarding Dodd-Frank financial reform highlights both benefits and costs of this piece of legislation. Additionally, the author highlights some additional pieces of reform that may have improved the legislation. Two examples are expanding CFPB regulation to auto-lending and increased budgets for the SEC and FTC. As always, there are benefits and costs to these provisions. Weigh the pros and cons of these provisions below.

(A) Which of the following are statements that would support the addition of these pieces of reform?

1. AIG and Lehman Brothers were not commercial banks, but played a huge part in the Great Recession.

2. Subprime auto-lending and repackaging of the loans has increased since 2010.

3. These provisions align well with the proposed Financial Choice Act.

4. These provisions will supercharge economic growth in the short-run.

(B) Which of the following are legitimate statements that would be considered costs to the addition of these pieces of reform?

1. The reforms do not reduce moral hazard.

2. Taxpayers have to foot a larger tax bill to pay for more oversight.

3. Increased oversight comes at the expense of constraining economic growth.

4. The FTC and SEC need more help regulating financial industries.