The House Financial Services Committee will hold hearings on the Dodd-Frank Act this week with the goal of demonstrating its negative impact on individuals and businesses. At least two meetings will be held next week. The subcommittee on Capital Markets and Government Sponsored Enterprises will hold a hearing on “The Impact of Dodd-Frank on Customers, Credit and Job Creators” on Tuesday. The subcommittee on Financial Institutions and Consumer Credit will hold a hearing on “The Impact of Dodd-Frank’s Home Mortgage Reforms: Consumer and Market Perspectives” on Wednesday. More hearings are expected to be scheduled throughout July.
Since Dodd-Frank was passed two years ago, regulators have struggled to write the rules that will implement it, citing insufficient funding and pending lawsuits that allege that so of the new rules are not adequately supported by cost-benefit analyses.
Dodd-Frank critics argue that the law has already had a negative impact, which will only increase as more rules are written. Supporters say that recent events such as the revelation that Barclays manipulated Libor rates demonstrate the need for stricter and more comprehensive regulations.