The Impact of Dodd-Frank, 5 Years Later

• The 5-5-5s of Dodd-Frank at 5: Episode 1
• The 5-5-5s of Dodd-Frank at 5: Episode 2
• The 5-5-5s of Dodd-Frank at 5: Episode 3
• The 5-5-5s of Dodd-Frank at 5: Episode 4
• The 5-5-5s of Dodd-Frank at 5: Episode 5

AAF also released research on the economic impact of Dodd-Frank. The research, authored by AAF’s President Douglas Holtz-Eakin, found the law reduces economic growth by $895 billion over ten years. Holtz-Eakin also penned an oped for the Huffington Post on the provisions of Dodd-Frank that were poorly targeted.  

The law’s impact on employment, the housing market, and the regulatory burden can be viewed here. The AAF research found that 5 years later Dodd-Frank has imposed more than $24 billion in regulatory costs and 61 million in paperwork burden hours. Only 60.3 percent of Dodd-Frank’s 398 regulations has been finalized, with another 21.5 yet to be proposed, and 18.2 percent in proposed form. Additional findings include:

• The top 5 costliest pending regulations would add $7.8 billion in regulatory costs and 1.7 million in paperwork hours.
• Small financial companies are experiencing stagnant job growth.
  •  The number of firms with 10 to 19 workers and the number with 20 to 49 fell 0.3 percent and 1.0 percent respectively.
  • Meanwhile the number of businesses with fewer than 5 workers only grew 0.7 percent and those with 5 to 9 only increased 1.7 percent.
•  Since Dodd-Frank, the number of jobs at federal financial regulatory agencies spiked 19.2 percent.
• Lending—whether commercial, real estate, or consumer—has not recovered in this economic recovery as quickly as the average post-WWII economic recovery.

You can click here to view additional AAF research on Dodd-Frank.