Week ahead: New GOP scrutiny on Dodd-Frank

The controversy over the Dodd-Frank financial reforms is heating up as Republicans and business groups ready a fresh line of attacks against the Wall Street banking laws.

The House Financial Services Subcommittee on Oversight and Investigations will hold a hearing Wednesday examining what Republicans see as “regulatory overreach” from Dodd-Frank.

Republicans have long criticized the bill for inhibiting economic growth since it was signed into law by President Obama in July 2010. But Democrats say the reforms are necessary to protect against another financial collapse on Wall Street.

{mosads}Tempers spilled over this week when business groups and financial reform advocates sparred over the economic impact of Dodd-Frank.

A study from the conservative American Action Forum claims Dodd-Frank regulations will depress economic growth by $895 billion over the next 10 years.

That’s about $334.60 per year for the average worker, the study found.

The American Action Forum blames the smaller GDP on the costs banks face in complying with some 400 regulations stemming form Dodd-Frank, such as capital requirements and rules on complex financial products such derivatives.

But Americans for Financial Reform was quick to defend Dodd-Frank, claiming that the study “exaggerated” the negative impact on the economy of the Wall Street rules.

By preventing the economy from slipping into another financial crisis, Dodd-Frank will actually create $2.9 trillion in economic benefits over the next decade, the group says.

Elsewhere on Capitol Hill, the House Energy and Commerce Committee on Wednesday will hold a hearing on reforming hydropower regulations.

The Senate Energy and Natural Resources Committee will begin looking at a slew of bills from Chairwoman Lisa Murkowski (R-Alaska) that could lay the groundwork for a comprehensive energy reform package on Thursday.

Also on Wednesday, the House Transportation and Infrastructure Subcommittee on Railroads, Pipelines and Hazardous Materials will hold a hearing on railroad deregulation, 35 years after the passage of the Staggers Rail Act.

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