Lawmakers: SEC failed to analyze Volcker Rule
January 16, 2014 by Melanie Waddell
Two top GOP lawmakers told Securities and Exchange Commission Chairwoman Mary Jo White in a recent letter that the agency has violated federal law by failing to conduct “any economic analysis” on the recently adopted Volcker rule, and have asked her to explain to them by Jan. 24 the “legal justification” for the agency’s oversight.
House Financial Services Committee Chairman Jeb Hensarling, R-Texas, along with Rep. Scott Garrett, R-N.J., chairman of the Capital Markets Subcommittee, told White in their Monday letter that the final Volcker rule, adopted by the five federal regulators on Dec. 10, should have undergone an economic analysis.
Conducting an economic analysis is a well-established legal requirement and both the Administrative Procedure Act and the Federal securities laws require the Commission to conduct a detailed analysis of the likely economic consequences of its rules and to connect these consequences to efficiency, competition and capital formation,” the two lawmakers wrote. Click here to read…
