Guest Opinion: Dodd-Frank: Two Years and Counting
Four years ago, our nation was thrown into the deepest economic morass since the Great Depression. No question, the situation was dire. People lost their jobs and their homes. Banks and companies closed. Government officials scrambled to help bolster our fragile economy.
Regrettably, in their zeal to remedy the situation, Congress used a Gatling gun, the Dodd-Frank Wall Street Reform and Consumer Protection Act, when a much more surgical strike might have been more effective to regulate the bad actors responsible for propelling us into financial turmoil.
Of course, the CFPB is not the only regulatory agency that credit unions deal with. The NCUA is examining concentration and interest rate risk, loan participations, credit union service organizations and appraisal management. At the same time, the Department of Justice, the Department of Labor and the Financial Crimes Enforcement Network have continued to issue new rules, in each case without any regard for what any other agency may be doing. But credit unions, that were in no way responsible for the financial crisis, must comply with the mounting burden anyway.
And the compliance burden is enormous. Regulators estimate that it will take American businesses more than 24 million hours every year to comply with just the first 225 of the estimated 400 rules in the law.