Fast Facts: Dodd-Frank Cumulative Weight
The Financial Services Roundtable recently released another iteration of its Fast Facts, reliable, bullet-point research about issues facing the financial services industry. Topics span TARP, Dodd-Frank, insurance, lending, retirement savings and more. Below are some updated Fast Facts on The Dodd-Frank Ac, which was passed in July 2012 in an effort to reform the financial industry. To date, the complex legislation has been met with mixed success and unintended consequences.
FACT: According to a Davis Polk report, as of March 1, 2013, 148 of the 398 total rulemakings required by Dodd Frank have been finalized, with 129 yet to be proposed.
- 279 rulemaking requirement deadlines have passed. 176 of these deadlines have been missed, and only 103 have been met with finalized rules.
- Over the month of February, 12 out of 42 deadlines were met with finalized rules, and no new rules were proposed.
FACT: The General Accounting Office stated that the Dodd Frank Act has had two main financial impacts on institutions; increased regulatory compliance and other costs, and reduced revenue due to restrictions on certain activities.
FACT: In order to understand and comply with the far reaching regulations of the act, agencies and financial institutions have hired more full time employees.
- Over the past two years, the Federal Reserve alone has hired over 900 new employees.
- For smaller and mid-sized banks, hiring additional staff can be costly, and could reduce their ability to provide loans, securitizations, and other services.