One upside, if you call it that, of the Frank-Dodd Act requirements was the jobs created within the Securities and Exchange Commission to enforce them. (That's on a really simple, jobs = good level. Not necessarily on a government-spending-and-regulation = good level.)
It's also creating IT jobs at banks as they prepare the transparent platforms known as swap execution facilities for the trading of over-the-counter derivatives, according to Financial News. It says up to 20 banks will have to build these systems and are preparing to spend more than $2 billion on new technology and top-class IT talent to do so.
The article says the director running a global IT team of 80 to 100 people can expect to earn between 250,000 and 300,000 (roughly US$400,000 to $500,000) a year. Many banks don't have the wherewithall to manage this themselves - they complain of difficulty in finding people with the necessary project management and business analysis skills - and turn to contractors who can earn up to 1,200 (about US$2,000) a day.
A study by IDC Financial Insights last fall projected that bank spending on risk management infrastructure will reach $74 billion by 2015 and account for 15 percent of IT spending within the industry. At bobsguide.com, Michael Versace, global risk research director at IDC Financial Insights, described the market for risk management technology as "large and still growing at a good clip." That article attributes the spending on implementation of regulatory reform such as Basel III.
Meanwhile, Reuters reports banks trying a novel idea - at least for them: sharing development costs. The article quotes Kosta Peric, head of innovation at financial messaging firm SWIFT, as saying:
Banks are looking to build things in a way that can be re-used and there is a collective interest in developing applications collaboratively.
That is, according to the article they're interested in sharing work on compliance and back-office technology as they look for other ways to differentiate themselves.