Analyst Says Dodd Frank Will Cost Economy $900 Billion Over 10 Years

Banks and non-banks, reverse mortgage lenders included, have been bearing the burden of the Dodd-Frank Wall Street Reform and Consumer Protection Act since it was enacted in 2010. 

With the onset of the Consumer Financial Protection Bureau, the rollout of new mortgage rules and disclosures, and additional new requirements across the lending spectrum, companies have been feeling the costs associated with the massive legislation passed under President Obama—not the least of which includes spending on compliance. 

But how much, exactly, will Dodd-Frank Cost? It could amount to as much as $895 billion in lost GDP over 10 years, according to a new estimate

Advertisement

“The consequences are significant,” writes Douglas Holz-Eakin, President of the American Action Forum, in a summary of a paper published this week in which the policy advisor analyzes the costs of Dodd-Frank over the 10-year period from 2016 to 2025. The costs in lost GDP, he finds, amount to roughly $3,346 per working-age person. 

The computation is “subject to large uncertainties, but the order of magnitude is instructive,” he says. 

Read the analysis

Written by Elizabeth Ecker

 

Join the Conversation (3)

see all

This is a professional community. Please use discretion when posting a comment.

  • What I am about to comment on is bold and what I believe to be true. I know a lot of publications may not want to print my comment because of its tone but I know the people at the Reverse Mortgage Daily. These are good people and they print what their readers express to be the truth. My comment below comes from my experience and the research I have done over the past 4 years on the Dodd-Frank Bill.

    The Financial Regulatory Reform Bill, commonly known as the Dodd-Frank Bill is one of the most destructive bills ever past for the economy of the USA!

    This bill along with the Health Care Reform Act, commonly known as Obamacare has brought this great nation closer to becoming a socialistic society than any other action taken by our government body as long as I can remember.

    I truly believe the Dodd-Frank Bill and the Consumer Financial Protection Bureau was established and designed to eliminate the small banker and small business!

    The history of our countries prosperity has shown that small business has always relied on the small community banks for their banking needs and to help in their growth! If people would look around, they would see small banks and small businesses failing nationwide.

    I am sorry but I am confident in what I am saying and I do believe whole heartily in what the heading of this article says!

    John A. Smaldone

string(112) "https://reversemortgagedaily.com/2015/05/07/analyst-says-dodd-frank-will-cost-economy-900-billion-over-10-years/"

Share your opinion

[wpli_login_link redirect="https://reversemortgagedaily.com/2015/05/07/analyst-says-dodd-frank-will-cost-economy-900-billion-over-10-years/"]