Testimony: SEC is Out of Control

October 27th, 2011
in econ_news

lamar-smith Econintersect: Opponents of the current regulatory process for securities trading have been testifying before the House Judiciary Committee, Lamar Smith (R, TX) Chairman (pictured). The testimony was regarding proposed legislation that would require every SEC regulation to go through a cost benefit analysis before implementation. The regulation would also apply all other independent federal agencies. Such a requirement has been in place for executive departments for about 20 years. Independent agencies are those where the president lacks the power to remove the chairman or a member such as the SEC, the Nuclear Regulatory Commission and National Labor Relations Board.

Follow up:

The issue has been pushed forward by the Republican controlled House in response to moves by the SEC to implement rules under the Dodd-Frank financial overhaul that may have a major effect on financial institutions and the economy. Smith, and other Republicans, have said the legislation would curb any potential government overreach on health care, financial services and the environment.

From Financial Adviser:

“There is no constraint on what these agencies can do right now,” C. Boyden Gray, a former regulatory official under President Ronald Reagan and now a partner at Boyden Gray & Associates in Washington, told the House Judiciary Committee.

“I feel as though this is 1980 all over again, when we had a serious invasion of regulatory overkill,” said Gray, who also was White House counsel for President George H.W. Bush.

Also from Financial Advisor:

Committee Democrats said today that imposing the standard on the independent agencies would delay new regulations, undercutting protections they said are necessary for health and safety and adding to the unease of business owners.

“The biggest problem we have is that we cannot get to the final rule quick enough,” said Representative Melvin Watt, a North Carolina Democrat. “I don’t understand how this is going to be consistent with ending uncertainty.”

The legislation is H.R. 3010.

Source: Financial Advisor via LinkedFA

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