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.