Skip to content

Analysis: Dodd-Frank, the jobs bill no one talks about

President Barack Obama may be smarting because his sweeping jobs bill has mostly stalled in Congress, but the Dodd-Frank bill — much maligned as a job killer — could boost the kind of work Democrats find hard to tout.

The Dodd-Frank financial reform overhaul last year aimed to curb the excessive Wall Street risk-taking that nearly leveled the financial system. It subjected the $600 trillion global derivatives market to regulation, increased banking oversight and created a new consumer protection bureau, among other measures.

And a debate has raged ever since over the impact of Dodd-Frank, with Republicans asserting the costs and uncertainty created by new regulations keep companies from hiring and force them to cut jobs.

But arguably, the more visible impact is the growth of a cottage industry of lawyers, compliance experts and other consultants, which does not score the kind of political points for Obama that new jobs for unemployed autoworkers would.

It’s difficult to quantify exactly how many jobs have been created, but there are signs everywhere the legislation will produce a large number of high-paying jobs as hundreds of rules are rolled out over the next few years.

“Call me cynical, but I think pretty much any time Congress legislates in the area of securities and financial regulations, it tends to benefit lawyers and consultants,” said Russell Ryan, a partner at King and Spalding.

The former enforcement officer at the Securities and Exchange Commission says his practice — defending companies from regulatory action — has grown in the 15 months since passage.

“It’s probably a trend that has got some staying power,” he said.

Paul Reymann, chief risk officer at Heit, an IT, security and compliance company for small banks, said it will take countless man hours to come to grips with the thousands of pages of the Dodd-Frank legislation.

“Dodd-Frank is a tsunami of change,” said Reymann, a former Treasury Department official.

In June, Heit launched a cloud-based compliance management system to walk small banks through mortgage reforms, liquidity requirements, stress testing and for help finding new revenue streams.

Reymann says about two dozen clients have so far signed on to the compliance system and he expects that to grow in the next year as more regulations are finalized.


Dodd-Frank requires big banks to hand over reams of data for periodic stress tests, change how they pay employees and submit living wills — blueprints for how they could be dismantled if they become insolvent — among other requirements.

These complex reforms have the compliance industry gearing up for a jobs bonanza.

For example, a job opening posted by legal recruiter Robert Half Legal screams: “Compliance Mgr. w/Investment & DODD-FRANK exp -to 90K!!.”

And attorney recruiter Sadie Madole says there are plenty more where that came from.

Law firm Morrison and Foerster’s “FrankNDodd” provides 3,000 users with updates on new rules and cheat sheets on sections of the massive law.

No firm estimates exist for the total cost of complying with Dodd Frank, but Barclays announced in June it had spent $48 million to draft its living will.

Tower Group, a technology research firm, estimated Wall Street banks and asset managers will have spent $3.8 billion between 2011 and 2013 just for technology related to compliance.

Depending on how you spin it, that money is paying the salaries of experts who will help make the financial system safer, or diverting resources that could promote economic growth.

“Some 15 months after Dodd-Frank was enacted, many small businesses are starved for customers and credit; unemployment has soared to more than 9 percent; and for far too many American families, economic security seems further away than ever,” House Financial Services Chairman Spencer Bachus wrote earlier this month. His letter to the deficit reduction panel urged that Dodd-Frank be watered down or repealed.

Democrats — including the bill’s co-author, former Senator Christopher Dodd — have fired back that the law is only 10 percent implemented and could not be responsible for the economic slowdown.

“In fact, it was the uncertainty inherent in a non-transparent and reckless financial system that made Dodd-Frank necessary in the first place,” Dodd wrote in an opinion article in the Washington Post.

But even as Dodd or other Democrats defend Dodd-Frank, they won’t tout its bright job prospects, says Bill Galston, of the Brookings Institute.

“I don’t think a jobs boom for lawyers and accountants is exactly what they had in mind,” he added.

(Reporting by Alexandra Alper in Washington)

Related Posts with Thumbnails

Posted in Finance & Economics, Politics.

Tagged with , , , .

Support #altnews & keep Dark Politricks alive

Remember I told you over 5 years ago that they would be trying to shut down sites and YouTube channels that are not promoting the "Official" view. Well it's happening big time. Peoples Channels get no money from YouTube any more and Google is being fishy with their AdSense giving money for some clicks but not others. The time is here, it's not "Obama's Internet Cut Off Switch" it's "Trumps Sell Everyones Internet Dirty Laundry Garage Sale".

It's not just Google/YouTube defunding altenative chanels (mine was shut), but Facebook is also removing content, shutting pages, profiles and groups and removing funds from #altnews that way as well. I was recently kicked off FB and had a page "unpublished" with no reason given. If you don't know already all Facebooks Private Messages and Secret Groups are still analysed and checked for words related to drugs, sex, war etc against their own TOS. Personally IU know there are undercover Irish police moving from group to group cloning peoples accounts and getting people booted. Worse than that I know people in court at the moment for the content they had on their secret private group. Use Telegrams secret chat mode to chat on, or if you prefer if you need to or buy a dumb phone with nothing for the NSA to hack into if you are that paranoid.

So if your not supporting this site already which brings you news from the Left to the Right (really the same war mongering bollox) then I could do with some. Even if it's just £5 or tick the monthly subscription box it will be much appreciated. Read on to find out why/


Any support to keep this site would be appreciated. You could set up a monthly subscription for £2 like some people do or you could pay a one off donation as a gift.
I am not asking you to pay me for other people's articles, this is a clearing house as well as place to put my own views out into the world. I am asking for help to write more articles like my recent
false flag gas attack to get WWIII started in Syria, and Trump away from Putin. Hopefully a few missiles won't mean a WikiLeaks release of that infamous video Trump apparently made in a Russian bedroom with Prostitutes. Also please note that this article was written just an hour after the papers came out, and I always come back and update them.

If you want to read JUST my own articles then use the top menu I have written hundreds of articles for this site and I host numerous amounts of material that has seen me the victim of hacks, DOS plus I have been kicked off multiple hosting companies, free blogging sites, and I have even had threats to cease and desist from the US armed forces. Therefore I have to pay for my own server which is NOT cheap. The more people who read these article on this site the more it costs me so some support would be much appreciated.

I have backups of removed reports shown, then taken down after pressure, that show collusion between nations and the media. I have the full redacted 28/29 pages from the 9.11 commission on the site which seems to have been forgotten about as we help Saudi Arabia bomb Yemeni kids hiding in the rubble with white phosphorus, an illegal weaapon. One that the Israeli's even used when they bombed the UN compound in Gaza during Operation Cast Lead. We complain about Syrian troops (US Controlled ISIS) using chemical weapons to kill "beautiful babies". I suppose all those babies we kill in Iraq, Yemen, Somalia and Syria are just not beautiful enough for Trumps beautiful baby ratio. Plus we kill about 100 times as many as ISIS or the Syrian army have managed by a factor of about 1000 to 1.

I also have a backup of the FOX News series that looked into Israeli connections to 9.11. Obviously FOX removed that as soon as AIPAC, ADL and the rest of the Hasbra brigade protested.

I also have a copy of the the original Liberal Democrats Freedom Bill which was quickly and quietly removed from their site once they enacted and replaced with some watered down rubbish instead once they got into power. No change to police tactics, protesting or our unfair extradition treaty with the USA but we did get a stop to being clamped on private land instead of the mny great ideas in the original.

So ANY support to keep this site running would be much appreciated! I don't have much money after leaving my job and it is a choice between shutting the server or selling the domain or paying a lot of money just so I can show this material. Material like the FSB Bombings that put Putin in power or the Google no 1 spot when you search for protecting yourself from UK Police with "how to give a no comment interview". If you see any adverts that interest you then please visit them as it helps me without you even needing to give me any money. A few clicks per visit is all it takes to help keep the servers running and #altnews alive!

However if you don't want to use the very obvious and cost free ways (to you) to help the site and keep me writing for it then please consider making a small donation. Especially if you have a few quid sitting in your PayPal account doing nothing useful. Why not do a monthly subscription for less money instead. Will you really notice £5 a month?

0 Responses

Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.

Some HTML is OK

or, reply to this post via trackback.