Lawmakers Fire Back at New SEC Secrecy Rules

Secrecy provisions buried in the Dodd-Frank financial reform law are threatening to undo the measure less than a month after it was enacted. Despite President Barack Obama's assurances that the financial reform bill would “increase transparency in financial dealings,” legislators from both sides of the aisle are lining up to suggest amendments to the law.

Rep. Darrell Issa, R-Calif.

At issue are provisions that allow the Securities and Exchange Commission to ignore public requests for information, including requests filed under the federal Freedom of Information Act (FOIA).

According to Politico, there are several bills to amend the Dodd-Frank financial reform law being submitted by the likes of Rep. Darrell Issa, R-Calif., and Sens. Patrick Leahy, D-Vt., John Cornyn, R-Texas, Ted Kaufman, D-Del., and Chuck Grassley, R-Iowa. “The problem is it’s written very broadly,” Scott Hodes, an attorney who specializes in FOIA, tells Politico.

The secrecy provision got little attention during lengthy debate on the controversial financial reform bill. It gained traction late last month when the SEC cited the new rules in federal court as part of an FOIA dispute with Fox Business News, which reported on the matter.