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Source link: http://archive.mises.org/16749/dodd-frank16-moby-dicks-and-counting/

Dodd-Frank=16 Moby Dicks (and counting)

May 2, 2011 by

The legislation that makes America safe for banking again, is 3,300,000 words and counting reports the Wall Street Journal.   Thought Sarbanes-Oxley was tough?  It was but 66 pages compared to D-F’s 849.  Heck, Glass-Steagall took only 34 pages.

“And about 62% of the 387 sets of rules required by the law haven’t even been proposed, according to law firm Davis Polk & Wardwell,” writes Jean Eaglesham.

“Dodd-Frank is Sarbanes-Oxley on steroids. It’s an exponentially greater volume of regulation,” says Margaret Tahyar, a Davis Polk partner. The “sheer number of rules still in the pipeline makes it almost inevitable agencies will miss an increasing number of deadlines over the next year.”

On the same page, the WSJ reports that bank lending is still tight as banks work through their troubled loan portfolios.  “It will likely be two to three years before a return to average levels, notes Credit Suisse strategist Douglas Cliggott. ‘We might have a fairly prolonged workout period,’ he said.”

If you were annoyed when your banker told you, “we have to ask for this because of the Patriot Act,”  wait till Dodd-Frank is fully implemented.

{ 3 comments }

Daniel May 2, 2011 at 7:43 pm

Sometimes I entertain the thought of the US recovering from this recession

News like this just pulls you back to reality: Americans are in for a long haul

João May 3, 2011 at 7:01 am

I’m sure someone made a joke on the US government measuring the success of the country’s economic recovery by:
1) Printing all regulations on A4 paper, no line spacing, Arial 10pt font.
2) Measuring how tall the pile of paper gets.

- “Now I know why we are sinking. Here, look at this: regulations don’t even reach the top of a 10-store building! We need to measure regulations in “Empire states”.
- “Okay, now we are in great shape! We have 2.6 ES (Empire State)!”
- “We are in paraside! We have a damn ME (Mount Everest) of regulations! Now we rule! Yay!”

Shay May 3, 2011 at 8:36 am

The “sheer number of rules still in the pipeline makes it almost inevitable agencies will miss an increasing number of deadlines over the next year.”

Obligatory Ayn Rand quote:

There’s no way to rule innocent men. The only power government has is the power to crack down on criminals. When there aren’t enough criminals, one makes them. One declares so many things to be a crime that it becomes impossible for men to live without breaking laws.

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