Dodd-Frank to cost upwards of $3 billion, reports claim

The Dodd-Frank Wall Street Reform Act was meant to conserve United States consumers a significant amount of money – but at what cost? Working class individuals will bear the brunt, surely. In fact, the Government Accountability Office (GAO) has revealed in a report that it will cost $2.9 billion over five years. Article source – Dodd-Frank will cost nearly $3 billion, says GAO by MoneyBlogNewz.

security in finances needs more than taxpayer dollars

While it might seem as if working class individuals are being asked to pay without end, the Dodd-Frank Act reportedly will not require full taxpayer subsidization to function, writes the Wall Street Journal. Of the 11 agencies that will be responsible for putting the Dodd-Frank laws into practice, six are either fully or partially funded by revenues and assessments from businesses and/or entities that the Dodd-Frank agencies oversee. Congressional appropriations cover three others while the Federal reserve will give money to the Consumer Financial Protection Bureau which money comes, not from working class individuals, but from revenues for instance assessments.

United States government gets more money from banks

Banks, credit unions, investment houses and short term installment loan outlets are slated to pay the U.S. government more to operate under Dodd-Frank laws. GAO report findings have been used by Republicans to show that Dodd-Frank won’t be good for the economy because of these concerns of over-regulation.

In order to support the 11 agencies in the Dodd-Frank Wall Street Reform Act, $975 million will be needed. This is a statistic the GOP loves to remind everybody of. About $2.9 billion is anticipated to be the cost of five-years. This will be the amount needed. Moreover, hiring 2,600 full-time workers (including 1,225 for the Consumer Financial Protection Bureau) will produce significant cost.

Other highlights from the GAO report

From the forthcoming GOP presentation to the House Financial Services Subcommittee on Oversight and Investigations, the Journal points out the following:

• To be able to pay 290 full-time staff that will implement the Dodd-Frank act, a total of $77.5 million will be needed, according to a Fed estimate. Three new offices – the Office of Financial stability Policy and Research, Financial Market Infrastructures Risk Analytics and Financial Market Infrastructures Oversight – were created to run Dodd-Frank laws smoothly.
• The Financial security Oversight council will, starting in the fiscal year for 2012, have to pay $7.9 million for a full time staff of seven.
• The Office of Financial Research has $74.5 million earmarked for use in fiscal 2012 and will hire 135 full-time staff to perform duties under Dodd-Frank.

Articles cited

Senate

banking.senate.gov/public/_files/070110_Dodd_Frank_Wall_Street_Reform_comprehensive_summary_Final.pdf

Government Accountability Office

gao.gov/

Wall Street Journal

blogs.wsj.com/washwire/2011/03/28/dodd-frank-2-9-billion-over-5-years-gao-says/

GOP on what Dodd-Frank might cost small businesses

youtube.com/watch?v=6iB2fWk7Rho