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New Study on the Consequences of Dodd-Frank
Monday, May 11, 2015 6:30 AM

The Dodd-Frank financial reform law created in the wake of the 2008 Wall Street collapse is costing the average worker $334.60 each year in lost wages, according to a new study called "The Growth Consequences of Dodd-Frank."

The conservative American Action Forum found that banking regulations will depress the nation’s gross domestic product by about $895 billion over the next 10 years. The financial sector is feeling the direct effects, but they are also trickling down to workers.

The lost GDP comes out to about $3,346 per worker over the next decade, according to the study.

The American Action Forum blames the smaller GDP and lost wages on the costs financial institutions face in complying with Dodd-Frank regulations. The Forum’s analysis of the Federal Register indicates that the cumulative burden (including the market value of paperwork hours for compliance) is roughly $14.8 billion annually.

According to the study, nearly 400 new regulations have been issued since the law went into effect, including new capital requirements and rules on complex financial products such as securitization and derivatives.

 

Source:  The Hill, May 6, 2015