And yet, from the moment Dodd-Frank passed, the banks’ financial results have tended to slide downward, in significant part because of measures taken in anticipation of its future effect. Since July 2010, Bank of America nosed down 42 percent, Morgan Stanley fell 25 percent, Goldman fell 21 percent, and Citigroup fell 16—in a period when the Dow rose 25 percent.
That sounded crazy, so I checked. Dodd-Frank passed on July 10, 2010 and the Dow was at 10,120. Today it closed at 12,845 for a gain of 26.9%.
So let me get this straight. Since Dodd-Frank passed, bank profits are cumulatively down about 25%, while the rest of the market has gone up about 27%? Win?