Review of CBO’s Cost Estimate for the Dodd-Frank Wall Street Reform and Consumer Protection Act, Testimony before the Subcommittee on Oversight and Investigations, Committee on Financial Services, U.S. House of Representatives,March 30, 2011.
“CBO estimated that, over the 20102020 period, the Dodd-Frank Act would increase both revenues and direct (or mandatory) spendingby $13.4 billion and $10.2 billion, respectively. On net, those effects were projected to reduce deficits by $3.2 billion. The revenues would stem primarily from fees assessed on various financial institutions and market participants. Certain provisions of the act were estimated to increase direct spending by $37.8 billion over the 10-year period; most of those costs, $26.3 billion, would result from a new program created to resolve insolvent or soon-to-be insolvent financial entities, which would be financed through an Orderly Liquidation Fund (OLF). CBO also estimated that other provisions of the act would reduce direct spending by $27.6 billion over that period by decreasing authority for the Troubled Asset Relief Program (TARP) and making changes to federal deposit insurance programs.”
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