Senator Mike Crapo (R-Idaho) has joined eight of his colleagues in cosigning the Financial Regulatory Responsibility Act of 2011.
The bill, which was introduced by Ranking Member on the Senate Banking Committee Richard Shelby (R-Ala.), would ensure that all financial regulators do a thorough and transparent economic analysis before adopting new rules, PoliticalNews.me reports.
Republicans have been looking for a way to hold financial regulators accountable for the economic impact on the hundreds of new rules that they are writing for last year’s Dodd-Frank financial overhaul law.
Republican arguments grew louder after the U.S. Court of Appeals for the District of Columbia Circuit struck down the Securities and Exchange Commission’s proxy access rule after it found that the SEC failed to adequately consider the economic effects of the rule, according to PoliticalNews.me.
“Many of the proposed Dodd-Frank rules contain cursory, boilerplate cost-benefit analyses that do little to quantify the rules’ costs and benefits and their effect on the economy,” Crapo said, PoliticalNews.me reports. “The court's unanimous decision to invalidate the SEC proxy access rule for failing to adequately analyze its economic costs reaffirms that economic analysis matters and that a check-the-box mentality will not suffice. By requiring federal financial regulators to conduct meaningful economic analysis, we will get better rules that can withstand scrutiny of whether the benefits of the proposed rule outweigh its cost.”