The Obama administration’s regulatory reform initiative to remove outmoded, outdated or unnecessary costly rules should be applied to the Dodd-Frank Act, according to the National Association of Federal Credit Unions.
Dan Berger, NAFCU’s executive vice president of government affairs, recently responded to two executive orders issued by the White House. One order focuses on executive agencies and another focuses on independent agencies such as the National Credit Union Association. Both orders are aimed at making regulatory programs more effective or less burdensome. The order directed at independent agencies requires consideration of costs and benefits before a decision on a regulation is made, according to NAFCU.org.
In a letter to the White House Office of Information and Regulatory Affairs, Berger wrote that the administration should focus on the overabundance of regulations that are being written for the Dodd-Frank Act.
All 26 executive agencies and four independent agencies have already submitted regulatory reform plans to consider the costs and benefits of regulations, however, Berger said the limited reduction in costs and burden realized under these recently submitted plans are “ far outweighed” by the costs associated with the plethora of Dodd-Frank Act rules forthcoming.
The administration needs to monitor each regulatory agency charged with implementing any part of the Dodd-Frank Act to ensure the new rules are considering the lowest cost possible, Berger wrote in his letter to the White House, according to NAFCU.org.
In a Wall Street Journal op-ed, Cass Sunstein, the administrator of the White House Office of Information and Regulatory Affairs, wrote that the reform measure will save $10 billion over the next five years.
"The president has directed agencies to give careful consideration to both benefits and costs, to promote public input and listen to stakeholders, to simplify and harmonize rules, to select approaches that promote innovation, and to consider flexible approaches that reduce burdens and maintain freedom of choice," Sunstein wrote, according to the Wall Street Journal.
"The administration just unveiled a plan for publicity, not a plan for growth," Sen. Barrasso (R-Wyo.) said, according to TheNewAmerican.com. "Cutting $10 billion in regulatory costs over five years is a drop in the bucket. In July alone, the administration proposed over $9.5 billion in new regulatory costs."