GOVERNMENT IS THE REASON AMERICA IS SUFFERING

Unhappy Anniversary: Dodd-Frank Hits the Terrible Twos

http://www.heritage.org/research/reports/2012/07/unhappy-anniversary-dodd-frank-hits-the-terrible-twos

Herigage.org – Diane Katz – 7/17/2012

Coming in at some 2,300 pages, Dodd–Frank presented a challenge to implement within the statutory deadlines: at least 400 separate rulemakings affecting virtually the entire financial sector. As of July 2, 63 percent of the deadlines have been missed,[1] which has intensified the cloud of uncertainty enveloping the finance sector—and the economy—since passage of the act. Thousands of businesses do not know what the government demands they do differently or when they must do it. With financial firms constrained by undue caution, consumers will experience tight credit, higher fees, and fewer service innovations. Job creation will suffer.

The proposed and final rules issued in the past 12 months reveal the alarming extent to which the federal government is seizing control of financial services—from individual checking accounts to the $300 trillion “swaps”[2] market. As a result, financial firms of all sizes are shelling out hundreds of millions of dollars for regulatory compliance officers and attorneys rather than making loans for new homes and businesses.

The Worst of the Worst

Many of the Dodd–Frank provisions are excessive and wholly unrelated to the financial crisis that provided the excuse for their creation. But some are far worse than others, including:

• Unchecked authority of the Consumer Financial Protection Bureau (CFPB). Unparalleled powers were granted to the CFPB
• Orderly Liquidation Authority.
• The Volcker Rule.
• The Durbin Amendment.
• Qualified mortgage rules.
• The status quo is indefensible, and Dodd–Frank should be repealed in its entirety. Congress should also ease regulations that undermine home sales, eliminate barriers to investment, and increase accountability in the rulemaking process.

Imprudent Delegation

Congress has delegated decision making to the bureaucrats.

By excessively delegating their lawmaking powers to risk-averse regulators, Congress has ensured that the finance sector will be unduly constrained—which is anathema to a dynamic economy.

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