ICYMI: More Evidence that Dodd-Frank Continues to Harm Main Street
January 8, 2016 -
Two separate reports published at the end of 2015 paint an ugly picture of the impact the Dodd-Frank Act is having on America’s community banks, credit unions, and the customers they serve.
The first report from the Dallas Federal Reserve concluded that in the era of Dodd-Frank’s regulatory onslaught, many community financial institutions may be “too small to succeed.” The report went to say not only that the “compliance burden is rising” for these institutions, but that the “playing field is becoming more uneven.”
The second report on the effects of Dodd-Frank came from the nonpartisan Government Accountability Office. Not surprisingly, it also indicated an “increased compliance burden” among community banks and credit unions, which has “begun to adversely affect some lending activities, such as mortgage lending to customers not typically served by larger financial institutions…”
And it’s not going to get better. As the GAO reports, “the full impact of the law remains uncertain” because the “array of new regulations” spewing forth from Dodd-Frank have yet to be finalized and fully implemented.
The Financial Services Committee is working to change this. In 2015, 28 Committee bills were signed into law, including 6 dealing with Dodd-Frank. In 2016, we’ll be working to present proposals laying out a better vision for financial reform – bold ideas that promote more opportunities for low and moderate-income Americans, protect taxpayers from future Wall Street bailouts, and empower families and individuals to achieve financial independence.
You can join our efforts and track our progress by signing up for regular updates here.