By asking independent agencies such the Securities and Exchange Commission to conduct a four-month review of existing rules aimed at eliminating burdensome regulations, President Barack Obama has acted to slow down the already sluggish implementation of the Dodd-Frank financial-services reform law.
“It’s a Catch-22,” Representative Barney Frank told reporters during a speech at the National Press Club. “First deny the SEC and CFTC funding. Then complain they have been slow to implement rules; then repeal the rules.”
This latest executive order — dubbed "historic" by Office of Management and Budget regulatory czar Cass Sunstein — comes in the form of a request since the president doesn't have direct authority over independent agencies like the SEC, the Commodities Future Trading Commission or the Nuclear Regulatory Commission.
|President Barack Obama
(Getty Images photo)
"Our expectation is that the public will welcome this and some of the agencies will welcome this," Sunstein told The Fiscal Times.
“Agencies (should) go forward with what is legally mandated and beneficial to the public while not going forward with regulations that are not mandated and beneficial to the public.”
"This process . . . frees up money and frees up business, especially small business, to do what they do best, which is to create jobs."
Bloomberg reports that, a year after the Dodd-Frank Act became law, hundreds of rules mandated by statute have yet to be written.
Financial firms, consumer groups and regulators are still engaged in hand-to-hand combat over many of them.
Deadlines for implementing the law are being pushed back as agencies find themselves unable to cope with the sheer size and complexity of the task under the timetable set by Congress.
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