Hot Air: Dodd-Frank costs US financial sector 24 million man-hours per year for compliance

[Patricia M. McBride]

And more from Washington, DC, the regulation capital of the world. We can all thank all those elected officials in Washington who approved this behemoth bill that will cripple the banking industry and cause a loss of jobs...................................  The bill will take more man hours to comply with than the hours required to build the Panama Canal, but since we have a president who has never really had a real job and a whole group of democratic politicians who have never had a job either, what do they know about such things.  Please understand I point to the democrats, because they are the folks who had control of the house and senate and passed Dodd-Frank.  Most of the folks that voted to pass this bill got out of school, ran for office and they have gotten re-elected over and over and now see themselves as elitists who rule our lives instead of public servants and therefore, we get bills like this which are lunacy at its finest.

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April 17, 2012 by Ed Morrissey

And that’s just the start.  The House Financial Services Committee will roll out a report today showing that less than half of the required rule-making for the Dodd-Frank bill passed two years ago has been completed, but just the first 46% already comprises more than 5300 pages of rules:

Texas Republican Rep. Randy Neugebauer, the chairman of the committee’s subcommittee on oversight and investigations, told The Daily Caller that means that instead of hiring people to handle small business loans, banks will be hiring staff to comply with the new government regulations, ultimately having a negative impact on job creation.

“For example, let’s just get it down to the community banker — the person that loans money to most of the small businesses in our country,” Neugebauer said in a phone interview. “We’ve had a few community bankers come in here and say, ‘you know, they’re hiring a lot more compliance officer than they are loan officers.’ That is increasing the cost of banking and, ultimately, they have to charge higher interest rates and higher fees.”

“The other thing that it impacts for our small businesses is because of some of the new rules and regulations, there’s a great deal of uncertainty about certain types of financial activity that some of these entities can engage in,” Neugebauer added. “I think that as these rules come out, what we’re trying to ascertain, and our committee has had a number of hearings on, is what the unintended consequences of some of these rules and regulations, but more importantly, just the sheer volume of them.”

The committee has rolled out a “burden tracker” to explain the costs of Dodd-Frank compliance, and will have a video out later today with more information.  Rep. Randy Neugebauer put the burden into perspective:

“This online resource will help the public better understand how the cumulative weight of these new rules – layered upon existing outdated, unnecessary and duplicative red tape – hurts small businesses and financial institutions.  They have to spend increasing amounts of time and money dealing with all this red tape instead of engaging in the activities that grow our economy and create jobs,” said Committee Chairman Spencer Bachus.

Read more here:  http://hotair.com/archives/2012/04/17/dodd-frank-costs-us-financial...