A survey released on Thursday (June 16) by the U.S. Chamber of Commerce has found that corporations are struggling as a result of Dodd-Frank financial reforms.
According to reports, these regulations are forcing businesses to either pass the cost of compliance onto their customers or to delay investments, the survey found.
The COC concluded that 29 percent of businesses surveyed said they increased prices for customers in the wake of financial services markets regulation. Nearly one-fifth said they canceled or delayed investment plans.
About 39 percent reported absorbing the cost of regulation. But a majority — 79 percent — said they have taken some measures that would impact their company’s customers, investments or staff, reports said.
More than a third said Dodd-Frank rules are weighing heavily on their business and expect them to continue to do so over the next two to three years. More than four out of 10 said the rules have a neutral or uncertain impact on their companies.
“Our view is that financial services is the essential fuel of economic growth, and when you begin to hear the impact on their customers, it becomes clear why we need to have growth as part of our financial-regulatory agenda,” said David Hirschmann, president and chief executive of the Chamber of Commerce’s Center for Capital Markets Competitiveness, in an interview.
The COC spoke with corporate treasurers, CFOs and corporate heads for its survey. The agency concluded that the survey suggests Dodd-Frank reforms could be stifling corporate growth, while still strengthening the financial system.
Dodd-Frank reforms are continuing to roll out, with reports late last year stating that they are only 64 percent completed since having the legislation finalized more than five years ago.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More