Subcommittee Examines Harmful Economic Consequences of Dodd-Frank
Increased compliance costs divert resources that could be used by employers to grow their businesses and create jobs, and those costs are often passed on to consumers.
The asset-backed securities market covers securities backed by everything from auto loans, business loans, credit cards, to commercial real estate. Some of these instruments performed well during the crisis, while others did not. The Dodd-Frank Act, however, essentially treats all of these categories of asset-backed securities as subprime residential mortgages. This one-size-fits-all approach hampers market efficiency and harms borrowers that rely on this market.
"With Dodd-Frank and practically every other major law passed since 2008, we have increased the regulatory burden on the private sector. That burden falls most heavily on small and mid-sized businesses, the biggest drivers of innovation and job creation in our economy," said Congressman
"We keep making it more expensive, complicated, and legally risky to start or operate a business. An outside observer might even conclude that we have decided entrepreneurs and private markets are a bad thing, and are passing laws designed to discourage them," Garrett added.
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