Dodd-Frank regulations are expected to cause a shift in employment as Wall Street prepares to cut jobs and Washington, D.C., begins to hire thousands of bureaucrats.
The financial industry warned that the regulations could be enough to eliminate a majority of the 1.78 million private sector jobs created since the economic recovery began in June of 2009, Finance.Yahoo.com reports.
Compliance costs for the new regulations already cost the financial industry $12 billion. That amount is expected to swell after the remaining 77 percent of the rules required by Dodd-Frank are written.
"In the end, it means fewer loans get made, slower job growth and a weaker economy," Stephen Wilson, the outgoing chairman of the American Bankers Association said, according to Finance.Yahoo.com.
The massive amount of rulemaking is causing a ramp up of federal agency hires.
A recently conducted Government Accountability Office study concluded that implementing Dodd-Frank rules would require 2,850 new federal employees just through fiscal year 2012.
The Consumer Financial Protection Bureau will require the majority of new hires and funding. The bureau was created by Dodd-Frank and serves as the watchdog agency over the financial industry.
The cost of the new hires is expected to cost to taxpayers up to $1.3 billion, Finance.Yahoo.com reports.