Frank-Dodd, Community Banking, and 14,000 regulations . Gee, what could go wrong?

[maxparrish]

Four and half years after the passage of an often incoherent and vague 2300 page tome of law, and the appendage (to date) of 14,000 regulations, Dr. Frank(instein)'s creature lives. And like any abomination of nature (or economics), stiff legged and arms outstretched, it is now loose killing the innocent.

A recent paper from Harvard's Kennedy School of Government adds to the pile of "something went wrong" literature on the "mistake"...

http://www.hks.harvard.edu/content/...on/1/file/Final_State_and_Fate_Lux_Greene.pdf

Community banks had little role in the financial crisis, yet play a major role in critical U.S.
lending markets. However, as our analysis of lending market data reveals, community banks are
losing market share and volume in individual, small business, and residential mortgage lending
markets. Smaller community banks have fared particularly poorly the last four years. What can
policymakers do...?

As we noted earlier, one of the most significant problems community banks face is the sheer
volume of banking regulations and the seeming lack of coordination. In fact, according to one
estimate, Dodd-Frank will increase total U.S. financial regulatory restrictions 32 percent relative
to 2010 levels once all of its rulemakings are complete.

and:

Our research suggests that community banks continue to play a uniquely important role in U.S.
agricultural, residential and small business lending markets. We find that while community
banks weathered the crisis with greater resilience than many mid-size counterparts, since the
passage of the Dodd-Frank Act the pace at which community banks have lost market share is
nearly double what it was during the crisis.

...policymakers should be concerned that a critical
component of the U.S. banking sector may be withering for the wrong reasons – inappropriately
designed regulation and inadequate regulatory coordination.

Wow, who could have predicted this?

 

[untermensche]

We're supposed to bend in which direction because of "market share"?

Who gives a shit about it?

Priority one is to not allow the banks to destroy the economy again.

We control the banks. They do not control us.

Regulations are not weights that have a cumulative effect on everything simply because they exist.

They can only be discussed specifically and in specific cases.