The Economist on the Dodd-Frank Act

Opening paragraph of Too Big Not to Fail in this week’s Economist:

SECTIONS 404 and 406 of the Dodd-Frank law of July 2010 add up to just a couple of pages. On October 31st last year two of the agencies overseeing America’s financial system turned those few pages into a form to be filled out by hedge funds and some other firms; that form ran to 192 pages. The cost of filling it out, according to an informal survey of hedge-fund managers, will be $100,000-150,000 for each firm the first time it does it. After having done it once, those costs might drop to $40,000 in every later year.


2 thoughts on “The Economist on the Dodd-Frank Act”

  1. Those costs are a drop in the bucket for hedge funds. The way the ‘media’ (fox news) portrays these regulations is unwarranted if the costs are truly as small as 150k the first year, and 40k a year afterwards — the dollar amount is truly insignificant.

  2. @BG: Perhaps the cost is a “drop in the bucket,” but it is totally unproductive. And this is just one of the myriad of reporting requirements, that in totality consume millions of hours of labor that otherwise could be engaged in producing something useful, not to mention the millions of hours the government bureaucrats spend digging through all of the forms looking for ways that they can say “Gotcha!”, all on our dime.

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