Proponents of the financial reform argue that the legislation will prevent a future economic crisis like the one that begin in 2007, but critics of the legislation say that the bill may hurt the economy, particularly small businesses and community banks. A recent study by Pricewaterhouse Coopers LLP found that 90 percent of leaders in the banking industry believe over-regulation to be “the biggest threat” to their businesses.
“We must make certain [regulations] do not harm the economy by drowning small business lenders in a sea of red tape,” Chairman Spencer Bachus of the House Financial Services Subcommittee said, The Washington Times reports.
Rule-writers have only issued 185 of the 400 Dodd-Frank rules. As of February 1, the Commodity Futures Trading Commission had missed 28 rule deadlines. The SEC’s rule-writing pace has also slowed, with the agency missing almost 60 percent of rule deadlines, according to the Association of Certified Financial Crime Specialists.
The House subcommittee on financial institutions and consumer credit estimates that it will take approximately 24 million man hours every year to comply with just the 185 regulations that have already been written.