Dodd-Frank will cost almost $3 billion, states GAO

What will the cost of consumer financial reform under the Dodd-Frank Wall Street Reform Act be? Working class individuals will be on the hook, but not for anything. In accordance with a Government Accountability Office (GAO) report, that burden will amount to as much as $2.9 billion over five years, the price of Wall Street reform.

security in finances needs more than taxpayer dollars

The Wall Street Journal reports the Dodd-Frank Act won’t need taxpayer dollars completely to work although working class individuals feel like this is the case. 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 companies and/or entities that the Dodd-Frank agencies oversee. Revenues such as assessments are used to pay for other ones. These consist of the three that congressional appropriations covers and the Consumer Financial Protection Bureau that the Federal Reserve will fund.

U.S. government gets more money from banks

Banks, credit unions, investment houses and short term loan outlets are slated to pay the U.S. government more to operate under Dodd-Frank laws. Concerns of over-regulation hurting competitiveness have come out because of this. The Republicans have used the GAO report to prove that the economy won’t be able to manage the Dodd-Frank laws very well.

The GOP will be talking about the first year of the Dodd-Frank Wall Street Reform Act as it will cost about $975 million to support all 11 agencies. That’s the baseline used to project the five-year, $2.9 billion price tag. There will need to be a total of 2,600 full-time workers hired for the laws. This includes a total of 1,225 workers for the Consumer Financial Protection Bureau being started.

The other stuff the GAO report has to show

The House Financial Services Subcommittee on Oversight and Investigations had a presentation from the GOP recently. The Journal explains these points from it:

• There was a Fed estimate done earlier this year. It stated that $77.5 million will be needed to implement the Dodd-Frank Act with 290 new full-time employees. The Financial Market Infrastructures Oversight, the Office of Financial stability Policy and Research and the Financial Market Infrastructures Risk Analytics have all been offices created. These three offices are necessary if the Dodd-Frank laws are to run correctly.
• The first of the three Fed sub-offices, the Financial stability Oversight Council, will pay seven full-time staff up to $7.9 million beginning in fiscal 2012.
• To be able to perform Dodd-Frank duties, the Office of Financial Research needs to hire 135 full time staff in the fiscal 2012 paying $74.5 million.

Information from

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