House Financial Services Committee says 24 million man hours needed for Dodd-Frank compliance

Randy Neugebauer

The House Financial Services Committee recently announced that it will take approximately 24 million man hours to comply with just the first 185 finalized rules under the 2010 Dodd-Frank Act.

“It took only 20 million to build the Panama Canal,” Oversight and Investigations Subcommittee Chairman Randy Neugebauer said, according to Hot Air. “Banks and credit unions, retirement funds and other financial institutions will be forced to spend a large portion of their budgets trying to comply with Dodd-Frank rules rather than lending to small businesses and American consumers and investing in our economy. While the promised benefits of Dodd-Frank are still illusory, the costs are beginning to become crystal clear.”

Rulemakers have written and finalized fewer than half of the 400 rules under Dodd-Frank so far. Overall, the 185 written rules cover more than 5,300 pages.

The HFSC has also rolled out its Dodd-Frank tracker this week to allow consumers to better keep track of the Dodd-Frank rules. The Dodd-Frank tracker provides the rule’s date, agency responsible for the rule, stage of development, labor hours required, the number of pages in the rule and informational links, The Orange County Register reports.

Chairman Spencer Bachus of the HFSC also expressed doubts about the legislation’s ability to benefit the U.S. financial system, adding that the tracker will aid the American public in understanding the resource costs of the legislation.

“This online resource will help the public better understand how the cumulative weight of these new rules—layered upon existing outdated, unnecessary and duplicative red tape—hurts small businesses and financial institutions,” Bachus said, National Mortgage Professional reports. “They have to spend increasing amounts of time and money dealing with all this red tape instead of engaging in activities that grow our economy and create jobs.”

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