More taxes won't mean more balance in the financial industry
While it may seem as if taxpayers are being asked to pay without end, the Dodd-Frank Act reportedly won't require full taxpayer subsidization to function, writes the Wall Street Journal. There are 11 agencies that are there to enforce the Dodd-Frank law. Six of them are already funded for probably the most part. Three others are covered by congressional appropriations, while the watchdog Consumer Financial Protection Bureau will receive its money from the Federal Reserve, all of which was initially obtained from assessments and other revenues, rather than from taxpayer wallets.
U.S. government gets more money from banks
All of the Banking institutions will pay more in government taxes to the U.S. 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 due to these concerns of over-regulation.
In order to support the 11 agencies in the Dodd-Frank Wall Street Reform Act, $975 million will be needed. This can be a statistic the GOP loves to remind everybody of. The five year tag is closer to $2.9 billion. It will cost quite a bit to hire 2,600 full-time workers which involve the Consumer Financial Protection Bureau’s 1,225 workers.
Other highlights from the GAO report
The House Financial Services Subcommittee on Oversight and Investigations had a presentation from the GOP recently. The Journal explains these points from it:
- 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 Financial Market Infrastructures Oversight, the Office of Financial stability Policy and Research and the Financial Market Infrastructures Risk Analytics have all been offices created. These three offices are necessary if the Dodd-Frank laws are to run correctly.
- 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.
- The Office of Financial Research has $74.5 million earmarked for use in fiscal 2012 and will hire 135 full-time staff to perform duties under Dodd-Frank.
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
Post resource - Dodd-Frank will cost nearly $3 billion, says GAO by MoneyBlogNewz.
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