“It is clear now that the overall effect of Dodd-Frank is far greater and far more negative than, I think, anyone would have thought,” Bartlett, a former U.S. representative, said during an interview on CNBC’s Squawk Box, Benzinga reports. “At some point, whether that is 2012 or 2013, Congress will have to take a better look at its excesses to make it into a more workable law. Otherwise, over the long run, the economy will suffer.”
Bartlett also made note of the Collins, Durbin, Lincoln and Volcker rules, saying that the mandates are examples of overregulation.
“Pretty much any part of Dodd-Frank that comes with a name attached to it is suspect,” Bartlett said, according to Benzinga.
Bartlett also highlighted the costs of implementing Dodd-Frank regulations.
“I think I saw somewhere estimates that the cost of Dodd-Frank in terms of hours is 22 million person-hours, which is two million more than [the time spent building] the Panama Canal,” Bartlett said, Benzinga reports. “At least with the Panama Canal, we got a canal out of it. I am not sure what we will get out of Dodd-Frank. The dead weight of Dodd-Frank has to be revisited.”
Bartlett added that the Federal Reserve’s recent stress tests on banks reveal a positive outlook for the U.S. financial system.
“It showed that our banks are much readier now to finance the economy than they have ever been. It is nice to know that even in the face of admittedly draconian conditions of a negative eight percent GDP and 13 percent unemployment, our banks are reading with far better capitalization and lower risk,” Bartlett said, according to Benzinga, referring to the hypothetical economic conditions under which the banks were tested.