Dodd-Frank Turns One: Are We Better Off?
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One year ago, Washington passed the Dodd-Frank Act in an attempt to fix the problems with our financial regulatory system that played a role in the financial crisis.
When the President signed the bill he said it would provide "certainty to everyone from bankers to farmers to business owners to consumers." Yet the new layers of regulation and the uncertainty surrounding the law's implementation have become barriers to investment and job creation.
Rep. Sean Duffy (R-WI) notes that Dodd-Frank has placed a significant burden on small community banks and credit unions, and at The Enterprise Blog, economist Mark Perry thinks Dodd-Frank has contributed to a "jobless and creditless recovery."
Business investment needs to be encouraged to grow the economy and reduce unemployment--especially long-term unemployment. Fixing Dodd-Frank can help.
David Hirschmann, president and CEO of the Chamber's Center for Capital Markets Competitiveness, said,
The vast majority of the nearly 500 rules called for by Dodd-Frank have yet to be put in place and if not done the right way, they could further threaten what remains a fragile economic recovery. We are simply not going to see American companies spending capital until they can begin to navigate their way through this tangled web of regulation.
Earlier this week, the Chamber released a report, U.S. Capital Markets Competitiveness: The Unfinished Agenda, that offers recommendations to get financial regulatory rules right and promote job creation.