Skip to comments.Dodd-Frank threatens to reduce credit availability by $1.2 trillion
Posted on 04/18/2012 8:35:45 AM PDT by SumProVita
The Financial Times today carries a story that U.S. banks have been resisting a new Fed regulationissued under the Dodd-Frank Actthat would limit their credit exposure to one another. According to the article, the banks have data showing that this would reduce credit availability by about $1.2 trillion.
Similar restrictions will apply to all nonbank financial firmsinsurers, finance companies, securities firms, hedge funds, and othersthat could be designated as systemically important financial institutions (SIFIs) by the Financial Stability Oversight Council (FSOC), a group of federal financial regulators created under the Dodd-Frank Act. If that occurs, these firms will become subject to the Feds regulation and credit availability in the U.S. economy will be further restricted
(Excerpt) Read more at blog.american.com ...
Will ALL of the American electorate wake up soon enough?
I have a friend/client who is a mortgage broker. He is livid with all the new rules and regs in Dodd/Frank. It’s like listening to horror stories around the campfire. He’s hanging on (like me) in hopes of an administration change in November. If that doesn’t happen ...
Dodd and Frank got their millions, their friends got their millions, then they said to everyone else “Screw you!” and rode off into the retirement sunset.
It’s called the good old boy club in D.C.,all the more reason for term limits.
For all to know: It replaced the Glass-Stegal Act which worked since the Depression and was just 7 pages.
What’s going on in this country is a little like very bad blonde jokes, one right after another, followed by hours and hours of Epic Fail videos.
The missing parts of the DNA sequences now live in and run DC. They’re free radical carcinogens.
Same here. I have a business collegue who said Obama put her out of business w Dodd Frank and she has been in banking for 20 years.
When I here people cheering on an obama second term out of spite it makes me puke - my business and millions others will not survive and I will count those people just as responsible as obama himself.
90% of people getting credit shouldn’t have it!
Maybe, but the 10% who “should” get credit are probably 90% of the dollars, and they will be impacted by the nonsensical Dodd-Frank.
Cheering government intervention leading to a lack of credit supply is pretty short-sighted. You are assuming that they know what they are doing and are limiting credit in the “right” places.
Sarbanes-Oxley was another disaster