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Atlanta Fed’s Lockhart criticizes slow rule-writing, calls for increased transparency

Dennis Lockhart

Atlanta Federal Reserve Bank President Dennis Lockhart called on regulators on Tuesday to carry out financial reforms with as little cost to consumers and businesses as possible.

During an Atlanta Fed conference in Georgia, Lockhart said that a successful outcome of the regulatory reforms “would be a resilient financial system with substantially reduced systemic risks and reduced overall risk of financial stability,” Bloomberg reports.

Lockhart also criticized the slow rule-writing process of the Dodd-Frank Act, saying that the devil is in the details.

“Almost two years after the Dodd-Frank Act became law, many rules have not yet been written, so much of the detailed work still lies ahead,” Lockhart said, according to Bloomberg. “The details of the rules will influence the structure of the firms.”

Lockhart said that the “Dodd-Frank is largely a conceptual set of reforms” that ultimately depends on how a number of regulatory agencies choose to write the rules, the Wall Street Journal reports.

Lockhart also added that “markets and the financial system in general will be involved in reacting to specific rules and the consistency among related rules,” according to MarketNews International, adding that he would also like to see “greater vertical transparency” and “greater awareness of the fault lines inherent in financial regulation,” adding that the reforms need “efficient supervision that enhances public interest…without increasing compliance costs.”

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