Dodd-Frank will cost almost $3 billion, states Government Accountability Office

What will the cost of consumer financial reform under the Dodd-Frank Wall Street Reform Act be? With any governmental undertaking, there’s a financial burden taxpayers shoulder. In fact, the Government Accountability Office (GAO) has revealed in a report that it will cost $2.9 billion over five years. Article source – Dodd-Frank will cost nearly $3 billion, says GAO by MoneyBlogNewz.

Working class individuals do not always determine financial stability

The Wall Street Journal reports the Dodd-Frank Act won’t need taxpayer dollars completely to work although taxpayers feel like this is the case. Of the 11 agencies that will be responsible for putting the Dodd-Frank laws into practice, six are either fully or partially funded by revenues and assessments from businesses and/or entities the Dodd-Frank agencies oversee. Revenues such as assessments are used to pay for other ones. These include the three that congressional appropriations covers and the Consumer Financial Protection Bureau that the Federal Reserve will fund.

Banking institutions will pay the government more

All of the Financial institutions will pay more in government taxes to the United States This is what the Dodd-Frank laws dictate. GAO report findings have been used by Republicans to show that Dodd-Frank won’t be good for the economy because of these concerns of over-regulation.

To be able to support the 11 agencies in the Dodd-Frank Wall Street Reform Act, $975 million will be needed. This is a statistic the GOP loves to remind everyone of. The five year tag is closer to $2.9 billion. There will need to be a total of 2,600 full-time workers employed for the laws. This includes a total of 1,225 workers for the Consumer Financial Protection Bureau being started.

The other stuff the GAO report has to show

The Journal explains that these things were noted in the GOP presentation to the House Financial services Subcommittee on Oversight and Investigations:

• A Fed estimate from earlier this year projected a cost of $77.5 million to pay 290 full-time staff dedicate to Dodd-Frank implementation. The Dodd-Frank laws need three offices to help it run better including the Financial Market Infrastructures Risk Analytics, Financial Market Infrastructures Oversight and the Office of Financial security Policy.
• There will be seven full-time staffs implemented in the beginning of 2012's fiscal year with the Financial security Oversight Council. This will cost $7.9 million.
• To be able to perform Dodd-Frank duties, the Office of Financial Research needs to hire 135 full time staff in the fiscal 2012 paying $74.5 million.

Citations

Senate

banking.senate.gov/public/_files/070110_Dodd_Frank_Wall_Street_Reform_comprehensive_summary_Final.pdf

Government Accountability Office

gao.gov/

Wall Street Journal

blogs.wsj.com/washwire/2011/03/28/dodd-frank-2-9-billion-over-5-years-gao-says/

GOP on what Dodd-Frank might cost small businesses

youtube.com/watch?v=6iB2fWk7Rho