The controversial Dodd-Frank Act has claimed 4,300 jobs this month and resulted in fewer choices for consumers, according to recent reports.
MetLife, one of the nation’s largest life insurers, announced in October that it was seeking a buyer for its mortgage unit. Earlier this month, the corporation announced that it would be closing the mortgage unit, resulting in a loss of $90 million, according to OpenMarket.org.
MetLife employs 4,300 people, most of whom will lose their jobs, according to The Wall Street Journal. MetLife’s exit from the mortgage market results in diminishing competition and consumer choice.
The Dodd-Frank Act imposes heavy restrictions on mortgage companies, causing MetLife to seek a buyer to avoid the oversight. Big banks like Bank of America and Wells Fargo face their own mortgage unit regulations and do not want to take the risk of acquiring another mortgage unit.
On a larger scale, many other U.S. employees are in the line of fire. A strict interpretation of the Volcker Rule, enacted by Dodd-Frank, may result in the firing of U.S. employees of overseas banks if they engage in proprietary trading.
“There is no question that we would lose jobs,” Wayne Abernathy, the vice president of the American Bankers Association, said, according to Bloomberg.
Supporters of the Dodd-Frank contend that the regulations are necessary to prevent future economic woe and downfall.