December 6, 2011
New regulations resulting from the Dodd-Frank financial overhaul bill could obliterate strides made in private-sector job growth, one industry expert claims.
“The level of real GDP could be 2.7% less by the year 2015 than would otherwise be the case for the United States,” said Stephen Wilson, outgoing chairman of the American Bankers Association, according to Investors.com. “This could result in 2.9 million fewer jobs being created.”
Complying with new Dodd-Frank rules will set the financial sector back $12 billion, according to the site. This figure is expected to grow as the final 77% of regulations are settled.
(VIDEO: Dodd-Frank Act Will Require 10.2M Man Hours to Execute, Says GOP)
House Republicans in September sent a letter to Treasury Secretary Timothy Geithner to request details on the number of regulations that have been cut during the implementation of Dodd-Frank, according to The Hill.
“Republicans pointed out that the 102 rules already coming out of Dodd-Frank are estimated to require firms to devote 10.8 million man-hours every year to comply,” The Hill states. “In comparison, the Empire State Building was built in 7 million man-hours, they said.” (Read more)
Since the recovery official began in June 2009, Investors.com reports that 1.78 million private jobs have been created. The site noted that the government is hiring thousands to help implement Dodd-Frank, in particular, the new Consumer Financial Protection Bureau created by the bill. The watchdog organization has launched with 1,225 employees and $330 million in funding, according to Investors.com.
Yet banking leaders claim the additional regulatory requirements will take away from resources that could be used to spur economic growth and job creation, states Investors.com. In particular, banks have let go employees ahead of an expected 45% loss in revenue from debit interchange fees. Click here to read the full article.
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