Legislation, News, Oversight, Regulation, Regulatory changes

President Obama meets with top financial regulators on rulewriting

Barack Obama

Barack Obama

President Barack Obama met with a number of financial regulators on Monday to discuss the ongoing implementation of rules intended to strengthen and reform the financial system.

Representatives from the OCC, CFPB, Federal Housing Finance Agency, Federal Reserve, CFTC, FDIC, SEC and National Credit Union Administration attended the meeting, along with U.S. Treasury Secretary Jack Lew.

During the meeting, Obama urged regulators to finish writing and implementing the rules mandated under the 2010 Dodd-Frank Act, saying that doing so would prevent future financial crises similar to that in 2008, The Wall Street Journal reports.

Less than 40 percent of the rules mandated by Dodd-Frank—many of which were supposed to be implemented by July 2012—have been completed, and more than 60 percent of the law’s rule deadlines have been missed.

Judd Gregg and Kenneth Bentsen, the heads of the Securities Industry and Financial Markets Association, said regulators should “focus on getting the remaining rules done right because poorly written rules could harm our strong capital markets that support a strong economy and help Main Street Americans succeed,” according to The Wall Street Journal.

While regulators have implemented rules requiring financial institutions to hold additional capital and establishing the CFPB to monitor consumer financial products, many other important rules, such as the Volcker Rule, remain unfinished.

The SEC has yet to propose eight rules, the deadlines of which have already passed. The regulator has finalized just 35 of its 95 required rules. The CFTC, however, has finalized a majority of its rules, though it has yet to issue proposals for six rules with missed deadlines.

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