Regulatory Weight

Weighing the Impact of New Rules on the Economy

The economic impact of the Dodd-Frank Act and Basel II rules is happening now. The financial crisis demonstrated the need for regulatory reform, but reform must be implemented in a way that does not inhibit economic grwoth and job creation. Each week we will be releasing an independent assessment about what new rules will cost the economy.

If you have any questions about our DFA Scale, please feel free to contact Abby McCloskey at abby@fsround.org.

• 1. Over 75% of surveyed economists expect a negative impact on credit availability as a result of regulatory changes. SIFMA, SIFMA Roundtable of Economists Sees Economic Growth Steady at Subpar Rate, Deficit Reduction Debate Continues for 2011, 2012. July 2011.
• 2. One Dodd-Frank rule could increase costs by approximately 75% to 195% for certain investors. Oliver Wyman, Assessment of the impact of the Department of Labor's proposed "fiduciary" definition rule on IRA consumers. April 2011.
• 3. Three Dodd-Frank rules will require 2,260,631 labor hours per year for compliance. This will require hundreds of new workers simply to monitor the rules. House Financial Services Committee. One Year Later: The Consequences of the Dodd-Frank Act. Authored by Chairman Spencer Bachus and Vice-Chairman Jeb Hensarling. July 2011.
• 4. The Dodd-Frank Act could reduce earnings by roughly $20 billion annually for largest banks. Standard & Poors Report. What Financial Reform Could Cost The Largest U.S. Banks. November 2010.

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