Financial Reform Law Will Create Uncertainty, Not Jobs

July 23, 2010

The FINANCIAL

As the President prepares to sign the Financial Regulatory Reform bill into law on July 21, the U.S. Chamber of Commerce pointed to the greater uncertainty it will create for business at a time when there should be a renewed focus on creating jobs.

“Such a broad, sweeping bill epitomizes a law with unintended consequences that creates more uncertainty for American businesses,” said Thomas J. Donohue, president and CEO of the U.S. Chamber. “For years the Chamber has called for reform that modernizes our financial system. Yet this law is like adding new paint on an old car; it’s still not going to run at the pace and with the agility that is currently demanded.”

As we move into the next phase of debate, the Chamber will work within the regulatory process to highlight the unintended burdens this law will have on businesses and their workers. This includes more than 500 required regulatory rulemakings, 81 studies, and 93 Congressional reports—according to a recent Chamber study—that businesses now have to grapple with. By contrast, the Sarbanes-Oxley legislation passed in 2002 only had 16 rulemakings and six studies.

“This is nothing more than a financial regulatory boondoggle,” Donohue said. “It won’t strengthen our capital markets, it won’t jumpstart the economy, and it won’t help create any new jobs except in government.”

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