Mercatus scholars Dr. Patrick McLaughlin and Robert Greene published a study quantifying the regulations in Dodd-Frank to determine the number of new restrictions the Act has created and will continue to create.
By applying the methodology of “RegData,” which relies on the content of the regulatory text as a data source, McLaughlin and Greene’s study estimated that Dodd-Frank will increase financial industry regulatory restrictions by 32 percent, yielding more new restrictions than were created between 1997 and 2010.
According to the study, it is important to note that most Dodd-Frank rulemakings have yet to be finalized, and that new rules could be more or less restrictive than the rules adopted through the end of 2011. Assuming that the remaining regulations are proportionately restrictive, however, the study estimates that Dodd-Frank would create a total of 16,543 new restrictions.
Lofchie Comment: Staying positive, there is considerable upside to 16,543 new restrictions, if you are a regulatory lawyer.