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House committee bashes Dodd-Frank

By Marcie Geffner · Bankrate.com
Monday, July 16, 2012
Posted: 6 am ET

The Committee on Financial Services, part of the U.S. House of Representatives, has unofficially designated July as a sort of Dodd-Frank Bashing Month.

The committee issued a statement marking the second anniversary of the passage of the Dodd-Frank Wall Street Reform Act and announcing its intention to focus throughout the month on "the burdens this law's 2,300 pages and more than 400 new rules layer on American companies, financial markets and consumers."

"Supporters of Dodd-Frank sold it to the public as 'tough Wall Street reform,' but in reality its red tape hurts businesses and small town banks far from Wall Street that had nothing to do with the 2008 financial crisis," the committee said.

As if the statement and hearings on the subject weren't enough to make its point, the committee also released an "interactive online survey" that asks consumers a series of financial questions -- answer yes-or-no -- and then displays more information, all of it negative, about the Dodd-Frank regulations.

The questions include:

  • Do you purchase food for yourself or your family?
  • Do you have a free checking account?
  • Are you comfortable with the government tracking all your financial transactions?
  • Do you regularly use a debit card for small dollar-value transactions?
  • Are you concerned that the government will bail out (again) banks that it thinks are "too big to fail"?

The "survey" purports to show consumers how Dodd-Frank regulations affect their daily lives well beyond Wall Street.

Not to be left out of the Dodd-Frank second anniversary festivities, the American Bankers Association, or ABA,  reissued a one-page paper arguing that the Dodd-Frank Act and heightened regulatory pressures hurt community banks' ability to serve their customers and communities.

"The weight of these new rules creates pressure to hire additional compliance staff instead of customer-facing staff," the ABA stated. "It means more money spent on outside lawyers, reducing resources that could be directly applied to serving a bank's customers and community. In the end, it means fewer loans get made, slower job growth and a weaker economy."

Follow me on Twitter: @marciegeff

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1 Comment
Ray
July 16, 2012 at 11:29 am

What would one expect the ABA to say? Of course they are not going to say, "Oh this is great regulation which helps prevent us from maximizing our annual bonuses and private jets! Yipeee!" Of course they are going to Whine and lobby when they don't get their way.