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Gingrich says Dodd-Frank is slowing economic growth

Newt GingrichPresidential candidate and former Speaker of the House Newt Gingrich claimed in a recent Washington Post editorial that the Dodd-Frank Act is slowing economic growth in the U.S.

"Mr. Dodd claimed that Dodd-Frank cannot be deepening the economic slowdown because only 10 percent of its provisions have been implemented," Gingrich wrote, WashingtonPost.com reports. "In fact, it is this sheer ambiguity and arbitrariness of the law that hurts businesses most."

Gingrich wrote that the uncertainty created by the almost 400 rules unelected federal regulators are tasked with writing by the Dodd-Frank Act make it almost impossible for job creators to plan, take risks, invest or hire more Americans.

Gingrich also took issue with Chris Dodd's (D-Conn.) contention that Dodd-Frank wasn't bad for small banks or that it failed to reform Wall Street.

"In fact, Dodd-Frank solidifies the very 'too big to fail' system it sought to eliminate," Gingrich wrote, WashingtonPost.com reports. "By designating a handful of large banks and institutions 'systemically important,' the federal government implicitly acknowledges that these banks are eligible for more bailouts. This creates two classes of banks: big banks that have a federal guarantee and the resources to comply with the maze of new regulations, and smaller banks that have neither."

The former speaker closed his editorial by calling for the dismantling of the Dodd-Frank Act.

One Response to Gingrich says Dodd-Frank is slowing economic growth

  1. Cara Campbell says:

    Thank you, Mr. Gingrich for your insight in the Dodd-Frank Act. I can honestly tell you that as a community banker, in a rural environment, making residential mortgage loans, the Dodd-Frank Act has been a disaster! It makes most smaller banks not want to even attempt doing an “in-house” home loan because of the regulations and the ambiguity of these regulations. The regs only confuse consumers more than they were before! A dismantling of Dodd-Frank’s “crap” would be celebrated in the banking world. Thank you. Cara Campbell, VP State Bank & Trust Co., Dillon, MT