Donohue said that the CFPB was “the mother of all regulators,” and that the agency has “virtually unlimited power to effectively dictate what financial products can be offered and at what cost,” hinting that there will be legal challenges to the Dodd-Frank reforms, Politico reports.
The Volcker Rule ands measures to regulate “too big to fail” financial institutions were also criticized by the U.S. Chamber.
The Chamber of Commerce, the largest business lobby in America, warned that regulators may have not conducted a full and proper cost-benefit analysis of the reforms, adding that the cost of certain regulations would outweigh the benefits, according to Politico.
Chairman Gary Gensler of the Commodity Futures Trading Commission also failed to convince the Chamber that the benefits of regulating Wall Street markets outweigh the risks. Following his speech before the Chamber, Gensler said in an interview that he has tried to sway the Chamber members in private conversation to consider business interests that are not related to the financial industry.
“Markets work best when they’re regulated,” Gensler said, according to Politico. “They have said publicly they support transparency, so I reminded them of that.”