Today, the U.S. Government Accountability Office (GAO) released a report entitled "DODD-FRANK ACT REGULATIONS: Implementation Could Benefit from Additional Analyses and Coordination" which analyzes whether the financial regulators are applying sound cost-benefit analysis in promulgating rules. In September, U.S. Senator Richard Shelby (R-AL), ranking Republican on the Committee on Banking, Housing, and Urban Affairs, introduced the Financial Regulatory Responsibility Act of 2011, which would require all of the financial regulators to conduct economic analysis as part of their rulemaking process. Senator Shelby also sent a letter to Chairman Tim Johnson (D-SD) requesting that the Senate Banking Committee hold a hearing on the bill. Additionally, Senator Shelby previously released a statement along with U.S. Senator Mike Crapo (R-Idaho), expressing concern over IG reports on Dodd-Frank implementation.
Shelby made the following statement on today's report:
"Today's GAO report "DODD-FRANK ACT REGULATIONS: Implementation Could Benefit from Additional Analyses and Coordination" confirms what the Inspectors General of the financial regulators found in their June reviews of the economic analysis performed by the regulatory agencies under their oversight. Among other troubling issues, the GAO report found "Little is known about the actual impact of the final Dodd-Frank Act rules... Regulators are required to conduct reviews of existing regulations to assess their impact, but some have not yet developed plans to review their Dodd-Frank Act rules." That is why we need immediate Congressional action to hold financial regulators accountable for rigorous, consistent economic analysis on every new rule they propose."