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Fast Facts: ECONOMIC IMPACT DODD-FRANK
NEW Cost Estimates
Over the last six months, dozens of independent studies have estimated the economicimpact of the Dodd-Frank Act. A selection of facts from these studies can be foundbelow:
The Volker Rule could cost American businesses $315 billion;
54% of institutions are looking to re-structure or terminate debit rewards programs due tothe Durbin Amendment;
Annual compliance costs of Dodd-Frank are already over $7 billion
even though only27% of Dodd-Frank regulatory rules have been completed;
Lending rates in the U.S. are projected to increase by 4.7% as a result of new rules, oras much as 7% if rules are implemented rapidlyIt is the risk that the Dodd-Frank apparatus will smother financial institutions in so much red tape
that innovation is stifled and America’s economy
suffers. The Economist,February 2012.
Regulators' estimate that banks will have to spend 6.6 million hours to implement the Volckerrule. Over 1.8 million hours would be required every year in perpetuity. That translates into 3,292years, or 3,000 bank employees to comply this rule. Frank Keating, President and CEO,
Electricity costs will increase by $5.3 billion per year.