Before you judge Dodd-Frank… | Bedford Corners Real Estate

After four years of execution and practice, it is difficult to assess just where the housing market would be if Dodd-Frank never went into effect. Would the market be better off or is that even quantifiable?

The mortgage market, en masse, seems to think two things. The first is that the impact of Dodd-Frank is, indeed, very quantifiable. And second, given the sum of its parts, everyone should hate Dodd-Frank.

As mentioned in an article from the American Banker, “In a rare public exchange in June 2011, Jamie Dimon asked then Federal Reserve Board Chairman Ben Bernanke what the total economic costs of the year-old Dodd-Frank Act would be.

“Has anyone looked at the cumulative effect of all these regulations, and could they be the reason it’s taking so long for credit and jobs to come back?” the head of JPMorgan Chase said.

“Jamie Dimon was so criticized for asking that question directly to Chairman Ben Bernanke,” said H. Rodgin Cohen, a partner at Sullivan & Cromwell and a leading banking lawyer. “That was not a loaded question. He wasn’t saying, ‘It was horrible.’ He was saying, ‘Has anybody looked at it?’ — which is a very legitimate question. I don’t think anybody can say they have answered that question.”

 

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