As its two-year anniversary approaches, the benefits of the Dodd-Frank legislation are being examined—and questioned. The House Financial Services Committee led by Spencer Bachus (R-AL) is challenging the merits of the legislation, saying its tenets are proving to be more of a burden than a boon to American financial markets and investors.
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The legislation created over 400 new rules for American companies. It is 2300 pages long. The bill that Bachus and Rep. Carolyn McCarthy (D-NY) reintroduced in April to create an external SRO is being viewed as an alternative to Dodd-Frank, with supporters claiming Dodd-Frank places undue hardship on businesses with no real reform
benefit to Wall Street.
Formulation of the required 398 rules are slow in the offing with 221 of those rules already past the deadlines imposed. Only 119 rules have been finalized and 142 rulemaking requirements have yet to be proposed.
The Capital Markets and the Financial Institutions and Consumer Credit subcommittees will each hold hearings on the Dodd-Frank legislation in July. They will examine the impact the law has had on home mortgage reforms, consumers, credit, and job creators.
A4A will keep you updated on the hearings throughout the month as they progress.