Doyle Mitchell, CEO of D.C.-based Industrial Bank, argues that the financial reform law will discourage lending. Do you really think that it will in the long run? After all, once the law is in effect and people know what to expect, it seems to me that everything will go back to business as usual. Especially if they start having more confidence in the financial system.
Here's an article I found with a similar viewpoint.
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Experts fear financial reform law will restrict credit to businesses
Washington Business Journal - by Bryant Ruiz Switzky
The landmark Dodd-Frank Wall Street Reform and Consumer Protection Act is meant to bring new stability to the financial system, but there’s not a lot of love for the legislation among local bankers, financial experts and business leaders, who say the law will reduce access to credit.
“The assumption lawmakers seem to have is that everybody in business is a crook, so we’re going to regulate you to death,” said Barbara Lang, CEO of the D.C. Chamber of Commerce. “It’s going to have a huge impact on businesses.”
Criticized by some as too weak, others as too far-reaching, the 2,300-page law, signed July 21 by President Barack Obama, is filled with new rules on everything from consumer mortgages to bank capital and liquidity to credit card swipe fees. The full impact of the law will take years to play out as federal agencies translate lawmakers’ language into actual regulations.
Whatever the outcome, it’s clear banks will have to spend a lot of money complying with the law — and they will no doubt pass those costs on to businesses and consumers. The net effect: It will probably be harder to get credit from a bank, and the cost of loans and other bank services will go up, experts say.
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Do you agree with this article? Please leave a comment if you do - or if you disagree.
June
