Here’s How Much Dodd-Frank Costs The Six Biggest Banks In the U.S.
By John Carney
It has gotten a lot more expensive to be too big to fail. A study from Federal Financial Analytics says the quantifiable regulatory costs borne by the six largest U.S. banks have more than doubled since before the financial crisis. The price tag in 2013 was around $70.2 billion, up from $34.7 billion in 2007.That is counting tightened capital rules, higher deposit-insurance premiums and supervisory assessments as well as interchange-fee restrictions. FFA says other new rules can’t yet be quantified. The bank with the biggest tab: Bank of America, which FFA figures was hit with an additional $8.6 billion in costs and lost profits. The next largest bill lands at Goldman Sachs, thanks to its conversion into a bank during the financial crisis. Surprisingly, J.P. Morgan Chase fares best in FFA’s study. It is saddled with just $4.3 billion in new regulatory costs.FFA doesn’t try to quantify the benefits of new regulations. But there is one thing that’s certain: they are still far cheaper than the bailout of many of those same big banks during the crisis.